With bitcoin nearing the 25k marks this represents a pivotal area for the cryptocurrency.
As the price of BTC broke through the 1D 200EMA for the first time in almost 12 months, BTC has retested the moving average as support and confidently reacted off that level pushing up higher. However, this lands BTC in the tricky position of being just under the 1W 200EMA as well as the local swing high. The genral consensus is that BTC has too much in its way to break past this level and continue its rally. With the macro economic environment not exactly favouring risk on assets as the threat of recession looms over the market, combined with a local top and a strong bearish divergence being printed it's not exactly a hard sell to be bearish right now.
In the case of the bulls, if this key area is breached and there's acceptance above this area, BTC should have no problem filling the FVG up to the 28k mark at least, if that is doable then 28-32k range is the next battleground.
In conclusion price could go up, or price could go down. Yes that is stating the obvious, obviously. The main thing to consider is how price reacts off this key level.
BULLISH = push above 25.5k -> retest as support -> continue higher
BEARISH = push above 25.5k -> sweep supply zone -> dip back below local swing high -> retest as resistance -> continue lower
As the price of BTC broke through the 1D 200EMA for the first time in almost 12 months, BTC has retested the moving average as support and confidently reacted off that level pushing up higher. However, this lands BTC in the tricky position of being just under the 1W 200EMA as well as the local swing high. The genral consensus is that BTC has too much in its way to break past this level and continue its rally. With the macro economic environment not exactly favouring risk on assets as the threat of recession looms over the market, combined with a local top and a strong bearish divergence being printed it's not exactly a hard sell to be bearish right now.
In the case of the bulls, if this key area is breached and there's acceptance above this area, BTC should have no problem filling the FVG up to the 28k mark at least, if that is doable then 28-32k range is the next battleground.
In conclusion price could go up, or price could go down. Yes that is stating the obvious, obviously. The main thing to consider is how price reacts off this key level.
BULLISH = push above 25.5k -> retest as support -> continue higher
BEARISH = push above 25.5k -> sweep supply zone -> dip back below local swing high -> retest as resistance -> continue lower
