Bitcoin’s price has risen to $23,000 thanks to a rally that began during the weekend’s last leg. This rally has brought in more money to the market which has helped drive the price further. The bitcoin price is trending above $23,000. However, significant resistance has been building up, which presents several important technical levels.
Bitcoin Must Beat $25.500
Although bitcoin has made a strong bull trend and is now at $24,000 there are some technical challenges that it must overcome before the digital asset can fully make its entrance in a bull markets. The resistance at $22,000 was an example, but it was not over.
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Since support was beginning to grow at the resistance level that had been previously very difficult to beat, bears have shifted their defense positions further. The most resistance bitcoin will encounter is when it breaks through $25,000. Resistance at $25,500 seems so strong that even a slight sell-off will not be enough to turn the tide for the bears.
The $28,000 price point is even more significant. Because the 2021 price level was at its lowest point, it is important. It has been a stable level for bulls as well as bears depending on the direction that they want to take cryptocurrency.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Although bitcoin was having some difficulties breaking through the $23,000 consolidation range, this wasn’t the most difficult level for the asset to reach. This means that bitcoin’s hold on its current price level remains shaky at best.
If the stock is not able to sustain and it falls to $22,000 below, then there are chances that its price will drop to $19,000 which would be where the next important support levels reside. This support level was also what supported its price during the difficult early June market.
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A bullish breakout has led to a promising market for the digital asset. This could lead to more shorts in the market, which would propel the digital asset ahead. Although a break to $30,000 seems unlikely, bitcoin could see $30,000 if it can overcome the $25,500 resistance.
Featured image by Reuters. Chart from TradingView.com
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