BTC’s shallow correction near the $25,000 level could result in reduced buying by FIL, OKB, VET and RPL.
The Dow Jones Industrial Average fell for the third week in a row, but Bitcoin
The price has broken apart and is on track to end the week near the $25,211 resistance. This indicates that the broader crypto market recovery is on a solid footing.
After Bitcoin’s sharp rally lower, analysts are divided on its next move. Some traders believe that the current Bitcoin rally will be rejected again, while others believe that the momentum is starting a new bull phase.
Bitcoin and many other cryptocurrencies are likely to continue rallying until most bears turn into bulls. Once this happens, it can be a significant drop. That gives more weak hands a chance to move and strong hands to add to their position. Higher highs and higher lows confirm the end of a bear phase and indicate the beginning of the next bull market.
Meanwhile, selected altcoins look strong and may follow Bitcoin further in the near future.
Let’s look at charts to determine milestones to monitor.
Bitcoin is trading near a strong selling resistance at $25,211. Short trading days on February 18 and February 19 indicate that bulls are in no rush to book profits and bears are cautious to stay low at current levels.
The moving averages and Relative Strength Index (RSI) suggest that bulls are firmly headed near overbought territory. A tight reinforcement next to a strong upper resistance usually dissolves upwards. If buyers push above $25,250, the BTC/USD pair may accelerate to $31,000 as there is no major resistance in the middle.
Conversely, if the price declines from current levels, it may find support at the 20-day exponential moving average ($23,115). Bears need to break below $22,800 to break the momentum. The pair could fall towards $21,480, which could act as a strong support.
The bears aggressively sold off the rally at $25,250, but failed to break below the 20-EMA. This indicates that sentiment is strong and bulls see dips as a buying opportunity.
Buyers may have another go at overwhelming resistance. If they can push the price above $25,250, the next level of growth will begin.
The first sign of weakness is a break below the 20-EMA. This will encourage the bears to try to push the price down to $22,800.
The immediate resistance level on February 17 was above $7. This shows the willingness of the bulls to start a new movement.
In the year There is minor resistance at $9.53 but it could be crossed.
The FIL/USDT pair may reach its target at $11.39. This level could act as a major hurdle, but if the bulls don’t allow the next move below $9.53, the rally could continue. The next resistance is at $16.
If the price lowers to $7 from the current level, this positive outlook may be reversed in the near term.
The four-hour chart shows that the bears tried to stop the upward movement at $8, but the bulls did not allow the price to fall below the $7 breakout level. This shows a strong buy in every little dip. The momentum of the support rally is higher and resistance has been reached at $9.53.
Sellers may mount strong resistance at this level, but the uptrending 20-EMA and RSI suggest that the path of least resistance is higher in the overbought zone. If the bears want to stop the rally, the price should drop below 8 dollars.
While the majority of cryptocurrencies have been declining below all-time highs, OKB (OKB) has been consistently hitting new highs over the past few days. Any asset that reaches a new all-time high has strength.
The OKB/USDT pair declined on February 18, posting a profit above $58. With strong improvement, corrections usually do not last three to five days. If the price rises above $50, the bulls will try to move the pair above $59. If successful, the pair could start a $70 trip.
Another option is to retest the support at $45 if the pair adjusts well. If buyers turn this level into support, the pair could consolidate between $45 and $58 for a few days. Bears need to drop below $44 to dominate.
The four-hour chart shows that buyers bought the dip to the 20-EMA, but did not have strength on the rebound. Although the moving averages are tilted, the RSI is negative