Recently, the market has seen a strong correction due to the bull run in the price of Bitcoin over the past several days. On December 7, 2020, the price reached a low of $19,030.09, which is considered a new all-time low.
However, the appearance of a double-bottom pattern has led to optimism in this correction.
Bitcoin can recover, now it’s more clear. Obviously there will be some challenges along the way. Bitcoin’s current price velocity is one of the cryptocurrency’s main challenges.
The current momentum is reversing the previous downtrend, so breaking through the $25,000 price level may not be enough, according to recent analyses.
Bitcoin price: known resistance level
Bitcoin’s price reached $25,000 at the end of August, a milestone. Such a pattern indicates that the current market has potential and will try to overcome the resistance.
Chart: TradingView.com
Looking at the range over the last four hours, BTC seems to be trading between $19,226 and $24,286 for the time being.
This challenge is in response to the latest CPI report due to the pessimism of the traders. The survey showed that annual inflation is over 8 percent.
This bad review can increase with 1% interest rates. Therefore, the bulls need to maintain their position in the $19,226 range to generate momentum.
The popular oscillator indicator has shown significant growth. In contrast, the moving averages showed bearish indicators.
Sustainable Momentum is a must for Bitcoin
To continue driving prices higher, the bulls need to generate sustained momentum. Once again, persistence reduces the likelihood of a dramatic correction.
Bitcoin price should not fall below the 71.60 Fibonacci level. If the bears go lower, the price of Bitcoin could drop to $18,000.
This event will cause the price to drop further. A sustained rally to break above the $25,000 threshold should be one of the bulls’ main objectives.
However, given the current pessimism and fear in 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