Impressive Rally Puts Bitcoin Above $24,000, But Is $28,000 Still Possible?


Bitcoin rose again above $24,000. This impressive rally comes after an intense week in which the FOMC announcement showed that the US is now in a recession. Bitcoin investors flocked away from the news, causing the digital asset to skyrocket during this time. As the digital asset has outperformed one important technical level, it remains to be seen if it can beat another level.

Cumulative Motivation Rally

There are a lot of factors that usually lead to a rally, such as the one that caused the price of Bitcoin to go up. One of those has been the trend of a renewed accumulation of investors flocking to digital assets to provide cover in uncertain economic times. Such a rally, if it continues, could put the digital asset in a well-established uptrend.

Related reading | Bitcoin Rebounds From Consolidation, What’s In Store?

However, there are still hurdles in the way for bitcoins. This means that even though digital assets continue to rise now, they may see a reverse trend that will push them lower again. To avoid such a fate, it is important that sellers be eliminated completely, and these investors and traders replaced with more determined long-term holders.

Bitcoin price chart from TradingView.com

BTC's hold on $24,000 remains shaky | Source: BTCUSD on TradingView.com

The whales were a subgroup trying to reverse the sale. With the decline of bitcoin, it provided an opportunity for investors to increase their holdings, and it was especially prominent among investors who held between 100-1000 BTC on their balances.

Could Bitcoin Reach $28,000?

Bitcoin’s recovery is on an impressive upward trajectory. However, this uptrend has not been fully established. It saw some obstacles along the way, and the bears started putting up resistance in the market.

An example of this was at the $24,000 level. Although Bitcoin has managed to beat this level several times, it still has a tough battle to hold on to. The escalating resistance at this point proved to be an important level for the bears to hold.

Related reading | High Open Interest Levels On Bitcoin Puts Market In A Weak Spot

In order for the cryptocurrency to reach $28,000, it must overcome the resistance at $24,000 and further at $25,000. Furthermore, there is a resistance expected at $28,000, given that it was the yearly low of Bitcoin in 2021. However, if the accumulation continues to rise at the price it is, the digital asset has a good chance of reaching that high.

Featured image from GoBanking Rates, chart from TradingView.com

Follow Best Owie on Twitter For market insights, updates, and sometimes funny tweets…





Leave a Comment

Your email address will not be published.