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Bitcoin Price Consolidates After Failing To Break Through Key Resistance Level

Bitcoinist

Bitcoin News / Bitcoinist 141 Views

Bitcoin price is consolidating after finding strong resistance at the $25,000 level. This year, the primary cryptocurrency’s price resurgence has been the major talking point, moving from $16k to $24k in a few weeks. 

This trend continued as Bitcoin surpassed the $25k mark for the first time since August 2022 this week, and some experts had predicted that the $30k could be the next resistance point. However, this was not the case, and Bitcoin was quickly rejected at $25k. 

Bitcoin Price Experiences Slight Correction At $25,000 

At the time of writing, Bitcoin is trading at $24,478 and has been unable to break the $25,000 level decisively. Given the strong rejection at $25k, analysts believe Bitcoin may enter a period of consolidation before making a fresh move. 

Related Reading: Dollar (DXY) Reaches Inflection Point, Critical Level For Crypto Continuation

The technical indicators also support a sideways movement in the near term as the two arms of the Relative Strength Index (RSI) remain above the midpoint of 50. It should be noted that the most recent price action coincides with a surge in bitcoin’s network activity which is near its all-time high. 

This corresponds well with some bullish market sentiment and shows that a good portion of the recent rally is based on strong fundamentals. However, given the current market conditions, a new narrative may be needed to propel Bitcoin to a new all-time high. 

Bitcoin is trading sideways on the 24-hour chart. Source: BTC/USDT on TradingView.com

Bitcoin will likely remain in a consolidation phase until more investors take a fresh look at the asset’s potential. This suggests a balance in the buying and selling pressures and signals an indecisive market. As such, Bitcoin will likely remain in a tight range, only breaking out when a strong catalyst arrives. 

Moving forward, if bitcoin breaks the $25,000 level, it could trigger further upside momentum. On the other hand, if it fails to break through, it could mean that the rally has ended, and bitcoin will be at risk of a correction. Therefore, it is important that traders monitor the $25,000 resistance for any potential breakouts or breakdowns.

Bitcoin Network To Experience Growth With Ordinal NFTs  

The Bitcoin network has continued to experience growth with the rise in the trend of NFTs minted on its blockchain. Ordinal NFTs began to be marketed through social networks at the beginning of the year. 

So far this year, more than 130,000 NFTs, mostly images and text files, have been minted on the Bitcoin network, according to data from Dune. Although it is unknown how many total sales were made of these NFTs, some documents estimate that collections like Ordinal Punks have already grossed millions of dollars. This, supposedly, is through sales organized in private groups.

Related Reading: $212 Million Flushed In Crypto Futures As Bitcoin Surges Above $24,000

All this has brought disagreement among some bitcoiners who disapprove of the fact that this type of asset is being uploaded to the network and believe it could have detrimental effects in the future. 

-Featured Image from Unsplash.com, chart from TradingView.com 


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