Bitcoin Tests $25,000, Is BTC Bound For Bullish Continuation?
Bitcoin has risen over the past week following the release of US inflation data. Thanks to the positive reaction from investors, BTC has strengthened above its yearly high and is currently retesting the next resistance level at $25,000.
With macro conditions clearly improving and investor confidence in the crypto industry recovering, the most well-known cryptocurrency on the market appears to be poised for a bullish continuation in the coming weeks.
At the time of writing, Bitcoin is currently trading at $24,850 with a 0.7% gain over the past 24 hours, indicating that BTC is forming a range for what appears to be a breakout above $25,000.
Bitcoin continues to post huge gains over the seven-day period, up 14.3%. And over the past 30 days, Bitcoin has continued to show positive momentum with a 9.6% increase.
Is BTC ready for a bullish breakout?
As BTC spot positions continue to target the $25,000 resistance level, option flows have recently stepped up in line with Bitcoin price action.
In accordance with data Research firm Deribit Insights points out that options activity is upside-focused, with a significant number of net call buyers in the $26,000 to $30,000 range, representing an area of significant investor interest.
With options expiring in the 25k-30k range on Feb 24, call buying accelerates and implied volatility (IV) rises, as does spot. Deribit Insights says that call spreads are “optimal buying structures as call and IV skew increases” and this market structure could help BTC continue its rally.
The volume of options and spot purchases is increasing; bullish expectations of investors characterize market sentiment. In addition, BTC capitalization hit a new monthly high of $383.4 billion as the price of bitcoin tries to break and gain a foothold above the $25,000 resistance level.
Mate to the bears?
While the bulls make another attempt to break the next resistance wall around $25,000 after several attempts, the “Notorious BID” whale buys the spot price to push the price of Bitcoin above the resistance zone. according to to the co-founder of Material Indicators, a crypto market analysis company, Keith Alan:
Multiple rejections of $25,000 are highly correlated with BTC macro TA, which is a good reason for TP at these levels, but the Notorious BID is still trying to push the price up. Based on history and the potential to overcome rising illiquidity, I am still scalping long positions.
Also, Material indicators added to Twitter mail that from the point of view of technical analysis (TA), the price of Bitcoin has reached a local maximum, and the liquidity of the offer has spread from the range of 25-25.5 thousand dollars to the zone of active resistance.
If Bitcoin gets past the next hurdle, it could end the bear market for good. A full breakout of Bitcoin could lead the largest cryptocurrency to new yearly highs and a possible rise to $27K. The current resistance level may be the bears’ last hope.
Credit : www.newsbtc.com