Bitcoin is trying to leave behind the uncertainty stemming from the renewed regulatory scrutiny over the crypto sector.
Bitcoin wants to stay above its target
Bitcoin aims to stay above $25,000, which remains the focus of attention ahead of the week of February 20-27. Based on historical data and the asset’s recent price action, investors can expect possible good luck for the asset in the coming days.
In particular, the historical data shared by the Bitcoin analyst by the Twitter alias StockmoneyL shows that Bitcoin is likely to provide a basis for the next step. According to the analysis, Bitcoin has historically rallied after going through a capitulation phase.
The capitulation took place after it recorded a peak in its price. Between the two phases, Bitcoin has experienced ups and downs in its price trajectory. Along this line, the 2022 bear market formed the last Bitcoin capitulation level and the year 2023 is gaining points in a possible rally.
Based on StockmoneyL analysis, a popular Bitcoin commentator on Twitter nicknamed Bitcoin Archive pointed out that the 2023 price action of the first cryptocurrency repeats the 2019 trajectory. Notably, after forming a neckline in early 2019, the position formed the foundation that resulted in Bitcoin’s rise towards the 2021 bull market.
Bitcoin price analysis
Currently, BTC has failed to hold above $25,000 after briefly regaining the level on February 19. According to cryptokoin.com data, Bitcoin is traded at $ 24,850. But on the weekly chart, Bitcoin is up over 10%.
At the same time, Bitcoin continues to express its bullish trend on the technical analysis front, with one-day indicators on TradingView suggesting asset accumulation. A summary of the indicators means ‘buy’ at 15, while the moving averages are for ‘strong buy’ sentiment at 13.
What’s next for Bitcoin?
While Bitcoin points to a bullish future, the current sentiment of the asset, particularly its failure to hold above $25,000, remains unclear.
As we look at the potential of Bitcoin in the days ahead, it’s worth noting that $25,000 asset trading has reached an eight-month high as investors flock to risky cryptocurrencies despite regulatory pressure.
At the same time, economic indicators suggest that the Federal Reserve may raise interest rates and Bitcoin continues to gain momentum to hold above $24,000. Additionally, Bitcoin appears to be benefiting as the US dollar is experiencing a slight decline, leading author Robert Kiyosaki to predict that BTC could be worth $500,000 by 2025.
BTC on the cusp of ‘Aggressive Movement’
According to trader Jake Wujastyk, BTC is on the verge of an aggressive move. In a tweet, Wujastyk analyzed the potential moves of BTC and noted that the cryptocurrency has entered a volume gap and has the potential to make an aggressive move to the breakeven supply zone from $29,250-30,400.
Wujastyk’s analysis shows that BTC is currently in a symmetrical triangle pattern that is neutral in nature. Until the daily close closes above or below the setup, the future direction of Bitcoin is still uncertain. While Wujastyk does not trade crypto, he often checks Bitcoin’s movements as it serves as a risk aversion indicator for the broader markets.
On the daily chart, BTC is currently testing the previous pivot area, which it reversed in August. According to Wujastyk, it was nearly rejected at August’s highs, but took a healthy candle Friday.
If BTC rises above $25.344 on the daily candle, Wujastyk believes it could quickly rally as high as $30,000, which is an important area on the supply and demand side.
Wujastyk’s analysis shows that if BTC can fix a volume against price, it can move quickly in the volume gap as there are not many participants in this space who own BTC, which creates a gap for the price to move quickly. This could signal a move towards the $30,000 area. As the weekend is a big time for crypto, traders will be watching closely to see if BTC makes an aggressive move into the breakeven supply zone.
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