Recently, the market has seen a strong correction due to the Bitcoin price bull run of the past several days. On December 7, 2020, the price hit a low of $19,030.09, which is considered to be a new all-time low.
However, the appearance of a double bottom pattern has led to an optimistic outlook on this correction.
Bitcoin can rebound, as is now more evident. Obviously, there will be some challenges along the way. The Bitcoin price present momentum is one of the cryptocurrency’s major challenges.
The current momentum is merely reversing the past downward trends, thus it may not be enough to break through the $25,000 price level, according to latest analyses.
Bitcoin Price: The Familiar Resistance Level
Bitcoin’s price actually did reach $25,000 in late August, which is a significant milestone. Such a pattern indicates that the current market has the potential to and likely will attempt to break through resistance.
Chart: TradingView.com
Looking at the range during the past four hours, it appears that BTC will be trading between $19,226 and $24,286 for the time being.
This challenge is attributable to the traders’ pessimism in response to the most recent CPI report. The survey revealed an annual inflation rate of more than 8 percent.
This bleak assessment could be followed by a 1% increase in interest rates. Therefore, the bulls must maintain their position inside the range of $19,226 to create momentum.
The prominent oscillator indicator has shown a bullish advance. In contrast, the moving averages exhibited bearish indicators.
Sustainable Momentum A Must For Bitcoin
To continue driving the price higher, the bulls must generate persistent momentum. Once more, sustainability will reduce the probability of a dramatic correction.
The price of Bitcoin should not drop below the 71.60 Fibonacci level. If bears break through to the downside, Bitcoin’s price might fall to $18,000.
This occurrence will further bring the price down. A sustainable momentum for a rally should be one of the bulls’ top aims in order to surpass the $25,000 threshold.
However, given the present pessimism and panic on the market, it may be some time before BTC reaches the $25,000 barrier.
BTC total market cap at $384 billion on the 4-hour daily chart Source: TradingView.com
Featured image from Business World IT, Chart: TradingView.com
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