bitcoin While its price creates a rather ‘negative’ outlook on the short-term chart, recent volatile movements complicate the situation. When the chart is considered over a wider time frame, things get even dimmer. Despite the negative outlook, traders who follow the bottom buying model continue to make these moves.
bitcoin price It was quite close to the $18,000 levels in June 2022, and the possibility of a move to similar levels in the near future was interpreted as an opportunity by some traders.
It is known by everyone that Bitcoin has a different place in the world of crypto money, and since it appeals to a wide audience, the price movement can be critical enough to affect the price of other crypto assets. Considering that other crypto-assets often move depending on many different factors, the control of the BTC price is largely with the traders. Therefore, when there is a “peak” in price, traders want to make a profit quickly and create selling pressure by opening sell orders.
Although a similar trend has been observed in the recent declines, it is possible to say that there are many different factors. For example, although the decline in May-June caused great panic, the price recovered relatively and prevented further collapses. However, even the short-term moving averages have turned into a resistance zone for BTC and this has hindered the rise of the cryptocurrency.
Bitcoin is making a comeback to the $18,000 levels, but this time the outlook has moved in a positive direction. As the daily chart shows a high buying volume that far exceeded the buy volumes after the crash in June 2022, we can expect a longer holding period and higher highs of $25,000 when it starts to move in the positive direction.
Bitcoin’s price action-based resistance has shifted a notch below the 100 EMA towards the 50 EMA. The price action in daily candle formations suggests that there may be a consolidation lower before an environment scenario for a breakout is created.
It looks like the candles are going to have a bit of a tough time breaking the 50 EMA curve based on past performance close to this exponential moving average. Buyers should take advantage of this drop and wait for an exit without falling into the averaging trap. Profit booking opportunities can be set near the 25,000 level.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.