Bitcoin Price Gears Up For Another Rally After Testing $25,000

The bitcoin price fluctuated between up and down for the past few weeks but now the digital asset is heading in the right direction. This recent rebound has seen bitcoin’s price rise to more than $24,000. Although the digital asset tested in one of its most sought-after spots, it was rejected on Sunday. However, bitcoin has been able to rally again towards the $25,000.

$25,000. Bitcoin Price

The bitcoin price took a quick tumble after touching $25,000 Sunday. The inevitable plunge below $24,000 was inevitable, but it wouldn’t last long. The bitcoin price recovered and was supported just below $24,000, which served as a rebound point. 

The decline was not enough to stop it from holding above its 50-day moving mean, which keeps the bullish trend in place. This shows that bitcoin has not given up on the $25,000 target. It is likely that Monday will see another testing of the resistance level.

All this is happening before the US trading hours. It is therefore expected that when the trading activity begins on the other side of the globe, there will be another boost. Additionally, bitcoin’s ability to quickly recover above $24,000 shows significant strength on the 24-hour chart.

Bitcoin price chart from TradingView.com

The next resistance for bitcoin’s price is currently sitting at $24,765. The bears are not supported at the moment, and the bitcoin price will likely make a quick break. $25,000 is the main target.

Investors Are Bullish 

Investors in cryptocurrency such as bitcoin continue to be bullish. The Fear & Greed Index hitting its highest level of 47 on Sunday shows as much. This is reflected in the bitcoin’s performance over the past few months. It shows that this rally is not over.

These trends continue until the index reaches extreme greed territory, before an inverse is observed. So if historical movements are anything to go by, it could take a couple of weeks for investors’ sentiment to peak, and by then, the possibility of bitcoin getting close to $30,000 remains high.

Also, it can be seen in exchange net flows for the past day. Bitcoin saw more inflows than usual, but Friday’s outflows surpassed those of inflows. This indicates that Bitcoin is being accumulated by investors.

This accumulation trend will continue and bitcoin could gain sufficient strength to balance at well over $25,000. The next technical level is at $28,000 once this point has been beaten. This was the low of the 2021 cycle.

CNBC's featured image and chart by TradingView.com

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