Bitcoin has risen steadily over the past two weeks. It hasn’t been bullish all this time, but for the most part the digital asset has maintained this upward trajectory. This saw it touch over $24,000 at one point after bouncing off its strong consolidation point. Now, as the digital asset is hanging around $23,000, a few technical levels have started forming below it.
Bitcoin begins to form support
Bitcoin broke above $23,000 again and support started to form. After previously losing its footing and falling to $21,000, the digital asset had seen its support reduced to $19,000, but that would change soon after. As bitcoin continues its uptrend, it is now eyeing support at $21,000, much stronger than before.
However, for the digital asset to continue on this bullish rally, it would need to break some important technical levels. The first would be the $25,000 range, where the most resistance is currently mounted. A general accumulation trend would be the only fuel likely to cross this level. After which, the nearest resistance would form at $28,000 as this is the lowest point of the 2021 cycle.
BTC continues recovery trend | Source: BTCUSD on TradingView.com
On the other side, the digital asset still has the potential for a relapse. This would put it in the direct path of the $21,000 support, but this is unlikely to hold in the long term. The next important level of support would fall at $19,700, which represents the peak of the 2018 bull cycle. Therefore, the support in place here would be strengthened from that at $19,000. But if that doesn’t hold, $17,600 would present itself as the next important level due to the current cycle low.
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For now, as bitcoin climbs, it is still expected to encounter resistance at $24,000, which was the point it failed to beat last week. This makes it the most immediate threat to the bulls in their quest to retake $30,000. This point determines whether bitcoin would be able to break above the 50-day moving average, which would determine a short-term bearish or bullish trend.
Sales, however, remain the main factor driving down the value of bitcoin. While the short term begins to turn in favor of buying, the long term outlook still represents selling for investors. These selloffs, which have yet to reach a point of fatigue, are most likely the cause of Bitcoin’s inability to successfully break through $24,000.
Featured image from The Financial Express, chart from TradingView.com
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