The price of bitcoin (BTC) increased last week as inflation and growth worries were allayed by a weaker-than-anticipated U.S. consumer price index (CPI).
BTC price increased by 4.92% to conclude the week at almost $24,100. BTC even surpassed $24,500 and tried to reach $25,000. It is consolidating at the moment and anticipates more gains above the $25,000 mark.
Bitcoin may be aiming for another retest of a crucial price level that prevents the digital gold from entering another bear cycle, which appears to be the next logical objective given that the coin was unable to break through $25,000, according to the cryptocurrency’s daily chart.
After falling below $20,000 in June, Bitcoin has been trading in a rising wedge for more than a month. Since then, the value of the initial cryptocurrency has increased by over 25%, with occasional jumps to a 30% price increase.
On the flip side…
Sadly, one pattern—the decreasing volume profile—kept the market as a whole cautious and signaled that traders and investors are not supporting the current direction.
When the market once again experiences intense selling pressure, it can eventually finish with downward volatility.
A dip below the wedge’s lower border at roughly $23,400 would mark the precise start of the reversal. Fortunately, the threshold coincides with the crucial 50-day moving average support level, which frequently serves as a guideline for trending assets.
There is currently nothing left to do but wait and observe how this week’s events play out. Along with the above noted drawbacks, Bitcoin is currently not experiencing a surge in institutional inflows, which typically fuel the first cryptocurrency’s ascent.
On the plus side, despite the most recent drop near $17,000, which brought back panic and desperation to the market, the short-term bounce on the cryptocurrency market has demonstrated that investor attitude is still favorable.
At the time of writing BTC is trading at $24,096 and is down by more than one percent.