Bitcoin Attempts a Recovery, is $25K Next? (BTC Price Analysis)

Bitcoin Attempts a Recovery, is $25K Next? (BTC Price Analysis)

Bitcoin’s price has been consolidating below a significant resistance level in recent weeks after continually failing to break it to the upside. While there is still a high probability for the price to break above this crucial point, multiple support levels are also available if a pullback were to occur.

Technical Analysis

By: Edris

The Daily Chart

On the daily chart, the price has been rejected from the key $25K resistance level multiple times recently. Currently, the 50-day moving average, located around $23K, is providing support and could push the price upside to test the $25K level once more, with a bullish breakout being more probable in this case.

In contrast, if the 50-day moving average gets broken to the downside, the 200-day moving average trending around the $20K psychological level could come into play and prevent any further decline.

Source: TradingView

The 4-Hour Chart

Within this time frame, the recent oscillations become much more clear. The price has dropped to the $22,500 support level following a rejection from $25K, with the mentioned support successfully holding the market.

Currently, the cryptocurrency appears to be targeting the $25K level once more, and the likelihood of a break above this point would be higher than before if the price is able to reach it. On the other hand, in the event of a deeper pullback and a drop below $22,500, the $21K level would be the next area to watch.

The RSI indicator is also showing values above 50%, which points to the bullish momentum in this timeframe, making the positive scenario more likely.

Source: TradingView

Onchain Analysis

By Shayan

The Exchange Inflow CDD measures the CDD value of coins destroyed by flowing into exchanges. High values indicate that more long-term holders moved their coins to the exchanges with the possibility of distributing them.

The metric surged each time before the price tended to break a vital sentimental price level, a sign of significant capitulation. For instance, after the massive crash due to China’s FUD in July 2021, the price dropped to the $30K crucial level, and after Exchange Inflow CDD suddenly spiked, Bitcoin found the bottom and began an impulsive rally.

Most recently, after Bitcoin plummeted to the $16K level, the metric experienced a surge and reached the same level as July 2021. Right after, the price began a bullish rally, and many believe that Bitcoin has found its bottom at $16K.

Due to the Exchange Inflow CDD’s historical behavior, there is a high possibility that Bitcoin has initiated the next bull market. Yet, due to the nature of the cryptocurrency market, it’s important to consider the alternative as well.

Source: CryptoQuant

The post Bitcoin Attempts a Recovery, is $25K Next? (BTC Price Analysis) appeared first on CryptoPotato.

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