Amidst the ongoing sharp sell-off in the crypto market, Bitcoin (BTC) investors remain vigilant, closely monitoring a pivotal price threshold that could dictate the cryptocurrency’s subsequent trajectory. The sell-off unfolded just as Bitcoin was endeavoring to surpass the $30,000 milestone in its quest for a fresh record.
In this context, RLinda, a crypto analyst and a professional trader, emphasized in an August 18 TradingView post that the $25,000 support level holds paramount significance for Bitcoin. The analyst underscored two confirmations that highlight the importance of this position.
The first confirmation stems from the sellers’ activity, indicating their interest in driving the price down to the $25,000 mark. The second confirmation, however, stems from the buyer’s side, implying that this level has garnered interest from investors looking to enter the market at a lower price point.
For traders looking for specific levels to watch, RLinda outlines support levels at $25,000 and $24,819 and resistance levels at $26,707, $28,474, and $30,575.
“Pay attention to the weekly chart on the left. Price is forming momentum and a strong distributive move towards the strong support at $25,000. The level is important for us has a double confirmation.<…> The market is in the phase of a bullish trend, a correction is forming within the upward channel on the garfish, which may end near support,” she said.
She suggested that a potential retest of this support level, particularly following the distributive movement, could lead to either a reversal in the trend or, at the very least, a solid bullish reaction. This analysis is grounded in the idea that responses often drive market movements at key support and resistance levels, and this juncture seems poised to exert a significant influence on Bitcoin’s trajectory.
Possible Bitcoin price catalyst
However, this potential movement is not occurring in a vacuum. Traders are awaiting crucial fundamental confirmation to spur action within the cryptocurrency sphere. Currently, the focus is on the U.S. Securities and Exchange Commission (SEC) and its impending decision regarding Bitcoin Exchange-Traded Fund (ETF) futures applications. A positive outcome from the SEC could inject renewed enthusiasm and momentum into the market, offering it a much-needed boost.
The analyst further pointed out that this potential movement within the broader uptrend could be strategically orchestrated to secure Bitcoin at a lower price before a projected period of solid growth. This aligns with common trading strategies that involve accumulating assets during periods of price weakness, only to reap the rewards during bullish phases.
Bitcoin sell-off was accompanied by a wipe-out of about $1 billion in market capitalization within 24 hours in the overall crypto sector. The sell-off has been attributed to several factors, with reports of Elon Musk’s SpaceX selling it Bitcoin ranking among the top. The space company reportedly sold off its Bitcoin holdings after writing down $373 million, but the timeline of the sell-off remains unclear.
The abrupt turnaround mirrored the worldwide stock and bond value drops this week. Investors have found themselves compelled to revise their anticipations regarding the likelihood of U.S. interest rates remaining elevated while the economy demonstrates strength.
Bitcoin price analysis
By press time, Bitcoin was trading at $25,928 with daily corrections of almost 2%. On the weekly chart, Bitcoin is down over 10%.
Elsewhere, a review of Bitcoin’s technical analysis shows a bearish momentum. A summary of the one-day gauges recommends ‘sell’ at 14; whole moving averages are for a ‘strong sell’ at 13. Oscillators are ‘neutral’ at 8.
Overall, the market remains on the edge regarding the next possible movement, likely to spur a possible rally.
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