Bitcoin Price Must Clear This Level If It Wants To See $28,000
Bitcoin’s trajectory in the recent recovery showed a clear intent from bulls to target the $28,000. While it hit some important milestones in its big to reach this level, it has been unsuccessful in reclaiming it. The tug-of-war between the bears and the bulls continues as the fight for control wages on. Given this, there is now a critical technical level that the price of bitcoin must clear before it is able to continue on its campaign to reach $28,000.
Capitulate And Breakout
Bitcoin has held considerably better than what was predicted for the digital asset a couple of weeks ago. Going by the previous bear markets, it was expected that the price would quickly reverse following a small recovery. But instead, bitcoin has been able to grow as high as $25,000 in this time, although it was unable to hold this level. This shows the resilience of bitcoin even when the market looks unfavorable.
However, the bitcoin price has been unable to reach an essential point that bulls were trying to get it to, which is the $28,000 level. Instead, it had encountered resistance at $25,000 and had been pushed back down towards the $23,000.
What bitcoin needs at this point is to break the May capitulation levels of $25,000. This spot had held up quite well during the fall from $30,000, and bears have now made this a point of resistance for the digital asset going forward.
If bitcoin’s price is able to break through the resistance at $25,000, it will have broken the nearest significant resistance for bears, and little resistance remains to keep it from reclaiming the $27,000 to $28,000 levels.
Bitcoin Refuses To Budge
Bitcoin price has been recording higher lows through the recovery, and that has not changed with the recent retracement. The price decline had stopped right above $23,000, decidedly higher than its previous low of $22,250. This proves the mounting support that has been witnessed at $23,000.
These higher lows consistently put the digital asset stopping above its 50-day moving average. This essential technical level is one that determines if the price of bitcoin is finally moving out of its bullish trend. And given the recent movements, it is safe to assume that the digital asset still has some steam left in it.
It is also worthy to note that most of the gains have come from the expectations surrounding the Ethereum Merge. Since it is the biggest upgrade in recent crypto history, the excitement has done well enough to push market prices higher.
The Merge is still about a month away, going by what the Ethereum developers have said. September 19th is the expected date for the Merge, so the days leading up to it are expected to be more bullish. This means that the crypto market has about a month of bullish movements left to go, making it more likely that bitcoin will retest $25,000.
Featured image from FortuneBuilders, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…