Bitcoin prices recover, rise above $20,000 after August drop
The cryptocurrency market has recovered and Bitcoin prices have risen above $20,000 after a sharp drop in August.
The crypto market is on the rebound, with Bitcoin price pushing north of $20,000 after a severe 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.
As Bitcoin price continues to surge, topping $21,000 at the time of writing, it's clear that the asset is outperforming the rest of the crypto market. With gains of 10% and 4% in the last 24 hours and 7 days, respectively, Bitcoin is well ahead of the pack. This is good news for Bitcoin investors, as the asset continues to prove its resilience and dominance in the market.
Bitcoin Price Nears Overhead Resistance
As Bitcoin continues to surge in value, data from Material Indicators (MI) shows that liquidity is also on the move. The benchmark crypto was able to fill over $15 million in orders as it broke past critical resistance at $20,000. With more and more investors taking notice of Bitcoin, it seems that the sky is the limit for the world's most popular cryptocurrency.
It is clear that the $21,500 level is a key point of resistance for Bitcoin in the short term. The selling orders that have been stacking up in the past 12 hours suggest that there is significant selling pressure at these levels, which could slow down any attempts by the bulls to push the price higher.
It is clear that both retail investors and large investors believe that Bitcoin is currently undervalued and has potential for further price growth. If the large investors continue to support the cryptocurrency, we could see a continuation of the current bullish trend.
It is clear that investors are still bullish on Bitcoin, despite the recent price trend. This suggests that the market is still confident in the cryptocurrency, and is willing to support it at current prices. This is positive news for Bitcoin, and could mean that prices will stabilise or even increase in the near future.
Bitcoin Price at Critical Levels on Higher Timeframes
Bitcoin is likely to continue its trend of consolidation in 2022, according to additional data provided by Caleb Franzen, Senior Market Analysis for Cubic Analytics. This means that the cryptocurrency could see periods of both ups and downs, but overall, the price is not likely to see any major changes. This is in contrast to the past few years, where Bitcoin has seen a lot of volatility and large price swings.
It is critical that Bitcoin price reclaims north of $25,000, $28,000, and $32,000, or the market risk a slow bleed into fresh lows. Franzen said while sharing the following chart, as seen below these periods have hinted at more downside.
Bitcoin consolidated for 107 days starting in early Q1 2022 before breaking down for the next leg lower. The current consolidation range has lasted for 83 days. I don’t expect the current market will match the 107-day range, but it’s worth noting that they can last for a while.
