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BTC price action shows the start of a consolidation range above $25,000.
Bitcoin price is showing lower price rejection above the $25,000 support area.
With a double bottom reversal at $25,000, BTC can enter a high-momentum bull run.
After the breakout, Bitcoin price halted its decline above $25,000. The sudden drop in BTC price has put multiple holders and whales under pressure with unrealized losses.
For example, MicroStrategy currently holds $152,800 in BTC at an average price of $29,672. At the current price of $26,111, the unrealized loss is approximately $85,564,800.
Still, the smart money continues to flow as the decline in Bitcoin price stalled just above the $25,000 support area.
Why is the $25,000 support area crucial for Bitcoin?
As the cryptocurrency market struggles to recover from its worst week since the FTX fiasco, Bitcoin price stalled at $26,000. However, the key support area of $25,000 remains the next bullish bastion according to Bitcoin price action.
Having provided resistance multiple times and supported pullbacks before BTC price fell this year, $25,000 has become a high activity point.
Similar to the $25,000 support area, Bitcoin’s 49% market dominance remains a critical point. ITC_Crypto CEO/Founder Benjamin Cowen highlighted the importance of the 49% level in a recent tweet.
Benjamin said that in June, many people said that BTC’s dominance would never break through 49% and that the altcoin season was about to begin. However, these same people criticized BTC’s dominance because it has since returned to 49%.
Bitcoin Technical Analysis
Despite breaking the support trendline, Bitcoin price found support at $26,000 as trading volume subsided, indicating a decline in selling pressure. In addition, BTC’s price action is expected to see a possible double bottom reversal from the $25,000 support area.
Currently trading at $26,000, Bitcoin’s price action has shown multiple lower price rejections, increasing the likelihood of a reversal. However, the intraday drop of 0.57% and the consolidation on the 4-hour chart will determine the future direction.
Will Bitcoin Reverse?
To survive the bull run in 2023, Bitcoin price must avoid falling below the $25,000 mark. A reversal at this level is extremely necessary to improve the market sentiment, while lower price rejections suggest that bullish action is in play.
If the Bitcoin price reverses in the coming week, the possibility of a retest will drive selling power at the breakout trendline. Therefore, short-term buyers can use this as a profit booking point.
Conversely, if the Bitcoin market cap falls below the $25,000 support level, the downtrend will crash the BTC price, possibly to $20,000.
In the crypto industry, if you want to seize the next bull market opportunity, you need to have a high-quality circle so that everyone can keep each other warm and maintain insight. If you are alone, looking around and finding no one, it is actually very difficult to persist in this industry.