Is Bitcoin Ready to Regain Key Psychological Level of $25,000? Here’s what you should see

Bitcoin BTC/USD traded slightly lower during Monday’s 24-hour trading session after a second rejection near the $25,000 level. During Sunday’s 24-hour trading session, the crypto also attempted to break above the key psychological level and failed.

Bitcoin has been consolidating below this important level for the past five trading days, and while the crypto has yet to stay above the level, Bitcoin is trading in a clear uptrend on the daily chart.

An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate that the bulls are in control, while the intermittent higher lows indicate periods of consolidation.

Traders can use moving averages to identify an uptrend, with rising moving averages for lower timeframes (such as eight-day or 21-day exponential moving averages) indicating that the stock is in a steep, short-term uptrend.

Rising long-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Similarly, the higher low can be signaled when a doji, morning star or hammer candlestick is printed. Also, the higher highs and higher lows often take place at resistance and support levels.

In an uptrend, “the trend is your friend” until it isn’t, and in an uptrend, there are ways for both bullish and bearish traders to participate in the stock:

• Bullish traders who already have a position in a stock can feel confident that the uptrend will continue unless the stock falls. Traders looking to take a position in a stock trade in an uptrend can usually find the safest entry at the higher low.
• Bearish traders may enter the trade at the higher high and exit at the pullback. These traders may also enter when the uptrend breaks and the stock makes a lower low, indicating that a reversal to a downtrend may be in the cards.

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The Bitcoin Chart: Bitcoin’s most recent high within its uptrend was printed on Monday at $25,214, and the last confirmed higher low was formed at the $23,600 level on August 12. On Monday, Bitcoin may have made its next higher low within the low-of-the-day pattern.

• If the uptrend is set to continue, Bitcoin is likely to trade higher on Tuesday, perhaps forming another higher consecutive high. If the crypto breaks below the last confirmed higher low, the uptrend will be negated and a downtrend may be in the works.
• On Monday, Bitcoin worked to print a star candlestick on the daily chart, suggesting lower prices could come during Tuesday’s session. The second most likely scenario is that Bitcoin could form an inside bar pattern on the daily chart as the crypto continues to consolidate.
• Bullish traders want to see Bitcoin hold above the eight-day exponential moving average (EMA), which has led the crypto higher since July 27. The uptrend has also seen Bitcoin’s eight-day EMA cross above the 21-day, which is bullish. A break of the eight-day EMA would suggest a warning for bullish traders.
• Bitcoin has resistance above at $24,206 and $25,772 and support below at $22,729 and $19,915. There is also the important psychological resistance above at $25,000 and below at $20,000.

See also: Why Bitcoin, Ethereum, and Litecoin Related Equity Bitfarms Are Emerging

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