The cryptocurrency market is back in the green as the price of Bitcoin surges north by $20,000 after a sharp rejection from those levels in August. The market is heading into the weekend, and with two major events in the next few days, there could be a spike in volatility.
At the time of writing, bitcoin price is trading at $21,000 with a gain of 10% and 4% in the last 24 hours and 7 days, respectively. Data from Coingecko shows that Bitcoin (BTC) is outperforming in the top ten list by market capitalization as other assets lag behind and cause slight losses.
Bitcoin price near upper resistance, can bulls move forward?
As Bitcoin flirts with its current levels, data from Material Indicators (MI) is starting to show liquidity on the move. The crypto-standard was able to fill more than $15 million in order requests as it crossed the critical resistance at $20,000.
Now, the most important level of resistance stands at $21,500 for the short term. At these levels, the bitcoin price is seeing bids piling up from $7 million to around $12 million in the past 12 hours. These orders may act as resistance and slow down any attempts by the bulls to regain higher levels.
Physical indicators show that the current price action is being bought by retail investors and large investors with orders over $100,000. If the bitcoin price is to show a bullish continuation, the latter should continue to bid and support the cryptocurrency.
However, investors with orders of $100,000 held steady with BTC price trends on the upside. This hints at a possible retest of the support with $19,500-$19,800 as potential targets to prevent further losses and maintain the bullish bias in the short term.
Critical levels for bitcoin price on higher time frames
Additional data provided by Caleb Franzen, chief market analyst at Cubic Analytics, shows that Bitcoin exhibited similar price action through 2022. In previous months, the cryptocurrency’s downtrend was followed by periods of consolidation.
As shown below, these periods hinted at a further decline. Thus, it is crucial for the bitcoin price to regain $25,000, $28,000 and $32,000, or the market risks a slow bleed to new lows. Franzen He said While sharing the following chart
Bitcoin consolidated for 107 days starting in the early first quarter of 2022 before crashing to the next bottom line. The current consolidation range lasted for 83 days. I don’t expect the current market to match the 107 day range, but it’s worth noting that it could go on for a while.