The Bitcoin price bull market of recent days has caused a sharp correction in the market. The price reached a record low of $19 030.09 on December 7, 2020. This is considered a new low.
The appearance of the double bottom has led to optimism about this correction.
Bitcoin has the potential to rebound as it is more obvious now. There will undoubtedly be challenges. The Bitcoin price present momentum is one of the cryptocurrency’s major challenges.
Recent analyses show that the momentum currently in place is not enough to reverse the previous downward trends.
Bitcoin price: The familiar resistance level
Bitcoin’s price actually did reach $25,000 in late August, which is a significant milestone. This pattern suggests that there is potential for and will likely be a breakthrough in the market.
Chart: TradingView.com
After looking at the four hour range, BTC appears to be trading between $19-226 and $24,286.
This challenge is attributable to the traders’ pessimism in response to the most recent CPI report. This survey showed an inflation rate exceeding 8 percent per year.
A 1% rise in interest rates could follow this grim assessment. The bulls should maintain their position within the $19,226 area to build momentum.
An oscillator indicator that is well-known has seen a bullish move. Contrary, moving averages displayed bearish indicators.
Sustainable Momentum a must for bitcoin
Bulls have to keep driving the price up. The probability of a sharp correction will be reduced if there is sustainability.
Bitcoin’s price should not fall below the 71.60 Fibonacci threshold. If bears break through to the downside, Bitcoin’s price might fall to $18,000.
The price will drop further due to this occurrence. A sustainable momentum for a rally should be one of the bulls’ top aims in order to surpass the $25,000 threshold.
It is possible that BTC will not reach the $25,000 mark due to the current market panic and pessimism.
BTC Total Market Cap at $384 Billion based on the daily 4-hour chart| Source: TradingView.com Featured image taken from Business World IT. Chart: TradingView.com