Bitcoin’s fate hangs near a critical level! Will BTC Price Near the $25K Crossroads Validate a Bullish Trend or a Bearish Future?
Bitcoin’s jump of 12% in a single day has become a debate in the crypto market as it again showed signs of a possible bull market this quarter. BTC price surged towards $25K after witnessing heavy inflow of funds near the $21.5K level and a minor rejection leaving investors confused about the upcoming price action.
Market analysts believe that wildly fluctuating bitcoin prices are a sign of a bullish and healthy market, while others are concerned about a market downturn as the volatility is too extreme for the ongoing events to handle.
Bitcoin Flash ‘Mother of all BTC signals’!
BTC price is showing a solid warning for the bears as its indicator, which is the mother of all signals, recently flashed green. according to a do Mohit Sorout, a crypto analyst, has received a rare and significant buy signal for the cryptocurrency from bitcoin (BTC) traders and investors, providing a bullish outlook for the digital asset.
The analyst says that the Dollar Cost Averaging (DCA) indicator is now indicating a solid bull market for BTC price. He further mentioned that this is the fourth time that the DCA indicator is flashing in the green zone after boosting the bitcoin price by 640% during the last bull run of 2020.
moreover, in a recent statementCameron Winklevoss, the billionaire co-founder of the Gemini cryptocurrency exchange, expressed his thoughts on bitcoin’s stellar performance. He indicated that the rise in bitcoin price above $25,000 is a positive sign of the crypto market recovering from the difficult situation caused by the demise of FTX.
BTC Price Near $25K Could Develop Two Scenarios
The $25K price level is instrumental in bringing about the upcoming price action for bitcoin as it puts bullish sentiment on the brink of selling pressure from the bears. Bitcoin has displayed a steady performance in the recent past, as the crypto king has kept its price near the $24K level. A breakout or failure near $25K could lead to sudden price movements in both the up and down directions.
As of writing, the BTC price is trading at $23.8K, down over 2.5% over the past 24-hours. PSTrade, a well-known crypto trader and analyst, predicts that BTC price may develop from $25K in two scenarios. First: If bitcoin clears its $25K resistance, it could rise above the 61.8% Fibonacci retracement level and acquire more longs until it reaches the $30K liquid zone.
Second: Failure to retest the $25K resistance would strengthen sellers’ dominance as BTC could see a spike in short positions, forcing the asset to correct to the downside. Lastly, a drop below the EMA-20 trend line at $22.6K could drag the asset towards the $18K-$21K support area, thereby opening fresh long positions.