Home Bitcoin BTC Price Respects $25k Defense Line As Recovery Begins, $30k-Bound Rally Beckoning?

BTC Price Respects $25k Defense Line As Recovery Begins, $30k-Bound Rally Beckoning?

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BTC Price Respects $25k Defense Line As Recovery Begins, $30k-Bound Rally Beckoning?

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BTC price has started to rebound following the early week sell-off which nearly weakened support at $25,000. Following the retail investor capitulation in August, whales have started selling with some closing out their positions possibly with the hope of reentering at lower price points – say $22,000.

“Giant whales in the last two days of trading a large number of buy monthly Put, in today’s rally has been loss, from the current position structure and trading data, the whales divergence is obvious, some believe that the 25,000 defense line is solid, but there is also a part of the people began to bets on the decline, which caused the short-term put IV rise is obvious,” Greeks.live said via Twitter.

BTC Price Bulls On The Move Again

Bitcoin’s live price, although relatively unchanged over the last 24 hours, is trading at $25,655. Defending the $25,000 support was a factor that investors needed to confirm before rallying behind BTC price for a potential breakout to $30,000.

An incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator would be instrumental in solidifying the uptrend. That said, traders hoping for exposure to long positions in BTC must consider waiting until the MACD line in blue crosses above the signal line in red.

btc price chart
BTC/USD four-hour chart | Tradingview

Based on the Money Flow Index (MFI), there are more people interested in the bullish outlook for BTC price than those favoring a continued downtrend, especially after the $25,000 support was defended.

The MFI measures the inflow volume of funds into Bitcoin and compares that to the outflow volume. The ongoing recovery from near-oversold levels suggests that buyers have the upper hand.

However, a sharp move to the bullish target at $30,000 might remain a pipe dream in the short term, especially if the previous support at $26,000 is not reclaimed.

The seller congestion at the 50-day Exponential Moving Average (EMA) implies that bulls must be ready for a fierce challenge with the sellers, especially would whales who target new entries at $22,000 and $20,000 depending on the availability of liquidity.

Several key milestones would help to confirm the certainty of gains reducing the gap to $30,000 starting with a daily close above the 50-day EMA and subsequently the resistance/support at $25,000. The ultimate push to $30,000 would depend on the bulls’ ability to weaken the seller congestion at the descending trendline.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.



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