Bitcoin price has faced a strong resistance around $24,000 although it has been climbing towards $25,000 for the past three weeks. The New Year’s crypto rally is still valid, with Bitcoin making higher highs and higher lows on the daily timeframe, a feature of a rising trend.
According to analysts at Eight Global, the Bitcoin chart shows that we have a series of equal highs at the top of around $25,200. A similar bullish sentiment was shared by Jim Wyckoff, senior technical analyst at Kitco, who pointed out that bulls still have a technical advantage in the near-term as price bullishness exists on the daily chart.
“Bitcoin bulls will need to show more strength soon to keep the uptrend and their technical lead alive if they are to remain in control,” Wyckoff noted.
Bearish trends prevail
However, the bitcoin uptrend thesis is at stake as on-chain analytics firm Santiment identified a significant pullback in bitcoin whales.
“The number of existing Wal-Bitcoin addresses continues to drop, with 2,011 in existence compared to 2,266 that existed a year ago today. 2,489 was the all-time high set on February 8, where prices rose +70% over the following 10 weeks,” Santiment noted.
Bitcoin whale addresses have reportedly hit their lowest level since 2019, signaling a potential price reversal.
Bitcoin’s daily RSI indicator shares a similar bearish sentiment. Notably, bitcoin price could be forming a possible head and shoulders pattern on the daily timeframe, with the RSI pointing to a bearish divergence. A course reversal usually follows the combination of these two aspects.
Therefore, the possibility of bitcoin prices falling below $21,000 in the short term cannot be completely ruled out. Analysts are closely watching the $23,000 support level for possible breakouts.
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