Bitcoin rose above $24,000 again. This impressive rally follows an intense week where the FOMC announcement essentially showed that the United States is now in recession. Investors had flocked to bitcoin following the news, causing a huge surge in the digital asset during this time. As the digital asset has broken an important technical level, it remains to be seen if it can beat another one.
Accumulation triggers the rally
Many factors usually trigger a rally, such as the one that drove the price of bitcoin higher. One of them has been a new trend of hoarding by investors flocking to the digital asset to hedge in times of economic uncertainty. Such a rally, if continued, can put the digital asset on an established uptrend.
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However, there are still obstacles in the way of bitcoin. This means that even if the digital asset continues to rise now, it could very well witness a trend reversal that would send it spiraling back down. To avoid such a fate, it is important that sellers are completely cut off, replacing these investors and traders with more determined long-term holders.
BTC's hold on $24,000 remains shaky | Source: BTCUSD on TradingView.com
Whales was a subset that attempted to reverse sales. With bitcoin’s decline, it had presented investors with an opportunity to increase their holdings, and it was particularly prominent among investors holding between 100 and 1,000 BTC in their balances.
Can bitcoin reach $28,000?
Bitcoin’s recovery has put it on an impressive bullish trajectory. However, this uptrend is not fully established. He encountered obstacles along the way and the bears began to put up resistance in the market.
An example was at the $24,000 level. Although bitcoin has been able to beat this level several times, it continues to fight an uphill battle to retain it. Mounting resistance at this point proved to be an important level for the bears to hold.
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For the cryptocurrency to reach $28,000, it would need to beat resistance at $24,000 and further down at $25,000. Additionally, there is expected resistance at $28,000 given that this was bitcoin’s yearly low of 2021. However, if the accumulation continues to rise at the current rate, the digital asset has good chance of reaching that peak.
Featured image from GoBanking Rates, chart from TradingView.com
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