BTC Finds Support at $25K as Bulls Eye $30K

Bitcoin (BTC) has begun recovering following Monday’s sell-off that nearly threatened to take the big crypto below the crucial $25,000 psychological level. BTC dipped briefly below this level to reach a low of $24, 962 on Binance before quickly rebounding to close the day at $25,200. This suggested that the bulls are aggressively defending the support at $25,000.

Crypto traders expect that a revisit of the said level will spark demand from this buyer congestion zone resulting in a “brief pump.” Crypto technical analyst CryptoSoulz posted on the X social media platform over the weekend saying, “ 1. I am bearish on #Bitcoin in LTF (Lower Time Frame). There are 2 billion dollars in liquidations on LONG positions. 2. Liquidation level: The liquidity is below support, not above. 3. We should revisit low’s at 25,000$, to then expect a brief pump” in the price of Bitcoin.

Could Bitcoin Make a 16% Move in the Short Term?

BTC trades in a falling wedge chart pattern with the support line providing support at $26,000 while the descending resistance line acting as a barrier at $26,000. A break above $26,000 would confirm a bullish escape from the falling wedge with the first line of resistance arising from the $27,760 level, embraced by both the 200-day and 50-day Simple Moving Averages (SMAs).

The 100-day SMA presents an additional barrier at $28,400. Bulls have to overcome and shatter this barrier before pushing BTC toward the all important $30,000 psychological level. This would represent a 16% climb from the current level.

BTC/USD Daily Chart

This optimistic outlook for Bitcoin was supported by the upward traction displayed by both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator. The MACD line was still moving above the signal line after crossing above it on September 2, suggesting that the market conditions still favored the upside.

The hopes of a recovery could, however, be dimmed by the occurrence of a death cross which is impending. This may appear soon on the daily chart when the 50-day SMA crosses below the 200-day SMA, signaling the extension of the recent downtrend.

As such, a daily candlestick below the $25,000 support wall would spell doom for the bellwether cryptocurrency with the next formidable support sitting around the $20,000 area.