BTC Rejected at $24K: Is a Correction Coming? (BTC Price Analysis)
• Bitcoin has seen many bullish on-chain and technical signals in the last week, but has been sharply rejected at $24K resistance level.
• The price has entered a consolidation stage and is fluctuating at the $23K region with two crucial resistance levels – $24K and $25K.
• There is a battle between the bulls and bears going on to determine mid-term direction, as a breakout from either of these levels could cause sudden surge in the market.
Bitcoin Reaches Resistance Level of $24K
Bitcoin’s impulsive uptrend has been halted by the psychologically significant resistance level of $24K over the last week. This implies that there is a battle between the bulls and bears going on to decide mid-term direction. Meanwhile, the price has entered a consolidation stage, printing multiple big shadows on candle chart structure.
Bullish Signals From Price Action
The 50-day moving average has claimed the 100-day moving average at roughly $18.7K, which is a definite bullish sign for price action. Furthermore, Bitcoin has exceeded long term descending trendline; however, momentum was not strong enough to rule out fake breakout scenario.
Crucial Resistance Levels On 4 Hour Chart
On 4 hour timeframe, Bitcoin faces two crucial resistance levels; one at $24K and other at $25K. Currently, it is fluctuating in 23k region with both of these resistances posing challenge for further advance in prices. A breakout from either of these levels could result in sudden surge in market sentiments.
Apart from technical analysis there have also been multiple bullish on chain signals such as high hash rate indicating increase mining activity, open interest rising along with increasing volume etc., all suggesting that bull market may be starting again soon if these levels can be broken through convincingly by buyers’ pressure.
Overall it can be seen that while bulls are trying hard to carry prices higher they are facing stiff resistances around 24k region which needs to be broken convincingly for further up move in prices otherwise we may see corrective pullback towards 22k or even lower if bearish sentiment takes over completely