Bitcoin Price Rally Continues, Approaching Key Resistance Levels $25,000
Bitcoin rises to near $25,000, as cryptos continue to gain amid a quiet trading day. Investors remain optimistic despite regulatory headwinds and are eyeing key resistance levels to keep the rally going. Follow the latest on the world’s largest digital asset and other cryptocurrencies.
Bitcoin Price Rally Continues, Approaching Key Resistance Levels
Bitcoin, the world’s largest cryptocurrency, has continued its upward trajectory, approaching key resistance levels despite regulatory concerns and a quiet day in stock markets due to the Presidents Day holiday. As of writing, Bitcoin’s price has risen by 1.5% over the past 24 hours to over $24,900, with the peak of recent trading briefly spiking above $25,100. This marks a 50% increase in value since the beginning of 2023, with Bitcoin hovering around its highest levels since last June.
Positive Momentum and Rising Volume
According to Rachel Lin, the CEO of crypto derivatives platform Synfutures, “Bitcoin’s positive momentum continued this week with a break above the previous high of 24,250. Not only did we see positive price action but volume was also higher than it had been in the previous two weeks.” However, this positive price action has not been accompanied by good fundamental news, indicating a potential risk in the future.
Regulatory Storm Clouds Gathering
The cryptocurrency market has been climbing despite a growing number of regulatory concerns. US regulators have taken several actions in recent weeks to crack down on crypto companies, products, and services, raising the prospect of a tougher operating environment in the world’s largest economy. However, traders remain optimistic about the prospect of legal clarity for crypto, even if it includes short-term headwinds.
Cryptos Correlated with Equities
Cryptos have become increasingly correlated with equities over the past year, moving in tandem with the Dow Jones Industrial Average and the S&P 500. Despite the absence of stock trading or major macro catalysts, Bitcoin and other cryptos have continued to rise, with key resistance levels lying ahead.
Key Levels to Watch
“We still need to watch how Bitcoin performs in the coming days,” says Lin. “There are several resistance levels between 25,000 and 25,250 including the 200-Week Moving Average. We’re also witnessing strong selling pressure in this region, a break above 25,200 would be a very good sign for Bitcoin and the wider crypto market.”
Beyond Bitcoin, Ether, the second-largest cryptocurrency, has gained 1% to move above $1,700. Meanwhile, smaller cryptos, or altcoins, have been more mixed, with Cardano climbing 1.5%, but Polygon falling less than 1%. Memecoins, such as Dogecoin and Shiba Inu, have also seen modest gains.
Final Thoughts
Despite ongoing regulatory concerns, Bitcoin and other cryptocurrencies have continued their upward trend, with key resistance levels on the horizon. Traders remain optimistic despite short-term headwinds, with strong selling pressure in the $25,000 to $25,250 range. As always, it’s essential to monitor how the cryptocurrency market performs in the coming days to determine the future direction of Bitcoin and other digital assets.
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