Bitcoin’s trajectory in the recent recovery showed a clear intent from bulls to target the $28,000. It has not been able to regain it, despite having reached important milestones. As the battle for control continues, the tug-of-war among the bulls and bears is continuing. This means that bitcoin needs to clear a crucial technical hurdle before it can continue its quest to $28,000.
Escape and Capitulate
Bitcoin’s performance has been far better than expected a few weeks back. According to the bear market precedents, the expected price rebound would be swift after a slight recovery. Bitcoin has managed to climb to as high as $25,000, but it wasn’t able to maintain this level. It is this that bitcoin has shown its resilience even in adverse markets.
But, bitcoin’s price was unable to hit the $28,000 threshold that bulls had hoped for. It had faced resistance at $25,000, and was pushed down to $23,000.
At this stage, bitcoin must break 25,000.00 capitulation levels in May. Bitcoin needs to break the May capitulation levels of $25,000.
If bitcoin’s price is able to break through the resistance at $25,000, it will have broken the nearest significant resistance for bears, and little resistance remains to keep it from reclaiming the $27,000 to $28,000 levels.
Bitcoin Will Not Change
The Bitcoin price has recorded higher lows throughout the recovery. This hasn’t changed since the recent retracement. This price drop had stopped at $23,000. It was significantly higher than the previous low of $22,250. This is a sign of the growing support seen at $23,000.
The digital asset has been consistently unable to break its 50-day moving median due to these higher lows. This technical level determines whether bitcoin’s price is moving away from its bullish trend. Given the bitcoin’s recent moves, we can safely assume it still has some fuel left.
Also, it is worth noting that the Ethereum Merge expectations have fueled most of these gains. It is the largest upgrade to crypto currency history and has been a catalyst for market price rises.
According to the Ethereum developers, Merge still remains about one month away. Merge Day is scheduled for September 19. Therefore, the market in the days ahead of it will likely be bullish. With about one month left of bullish movement, it is more likely that bitcoin will reach $25,000.
Featured Image from FortuneBuilders. Chart by TradingView.com
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