Bitcoin (BTC) prices had shown a surprise rebound from the recent lows and managed to sustain prices above the two major EMAs, which has attracted investor attention and it appears that $20,000 is about to close a long-term basis and the downside potential is limited. At the moment, BTC/USDT is trading at $23,235 with an intraday gain of 0.34% and the 24-hour volume to market cap ratio of 0.0341
Recently, investors are more excited about Ordinals Bitcoin-based NFT, which will allow NFT to be stored on the Bitcoin blockchain to bring more security, transparency and traceability.
Will BTC rebound to $25,000 or fall below $20,000?
BTC/USDT daily chart by Tradingview
Bitcoin (BTC) prices are in an uptrend and are climbing higher, forming a bullish continuation pattern that shows long-term investors’ confidence in the leader of the cryptocurrency world.
In early February, BTC prices formed a near-term base of $21,500 and rallied sharply due to the recent Fed rate hikes that directly impacted BTC and prices surged 18% in a short period of time. Later prices held at $25,200 and entered the tight consolidation.
Meanwhile, BTC prices held over 50- and 200-days show that the position trend is still bullish and any short-term correction has a high probability of bouncing off the support levels. However, if the price breaks below the 200-day EMA, bears could attempt to drag it to $20,000, which will act as a key demand zone for the long-term investors. BTC technical indicators like MACD have generated a negative crossover but the curve is sloping sideways suggesting prices are likely to consolidate bearish, but the RSI is right at 50 indicating an equal level of tug of war between buyers and sellers.
On the other hand, the recent hype surrounding Ordinals Bitcoin-based NFT has also caught the attention of investors, which could prove beneficial for long-term investors as well.
Summary
Bitcoin (BTC) prices attempted to breach the $25,000 hurdle, but unfortunately, weak global sentiment prevented the bulls from sustaining the higher levels and prices experienced a reversal to the downside. However, technical analysis suggests that the trend is still in bullish grip and prices have a high probability of bouncing off the support levels mentioned below.
Technical Levels
Resistance levels: $25,200 and $26,700
Support Tiers: $21,500 and $20,000
Disclaimer
The views and opinions of the author or those referred to in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in crypto assets involves risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while in college. He is a keen eye for detail and shares his passion for writing with his work as a developer. His backend knowledge of blockchain helps bring a unique perspective to his writing
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