Bitcoin price is consolidating after it failed to break through the key resistance level
Bitcoin price is consolidating after finding strong resistance at the $25,000 level. This year, the primary cryptocurrency’s price boom has been the main talking point, moving from $16k to $24k in a matter of weeks.
This trend continued as Bitcoin passed the $25k mark for the first time since August 2022 this week, and some experts had predicted that $30k could be the next point of resistance. However, this was not the case and Bitcoin quickly declined to $25k.
Bitcoin price experiences a small correction of $25,000
At the time of writing, Bitcoin is trading at $24,478 and has failed to decisively break the $25,000 level. Given the strong rejection at $25k, analysts believe that Bitcoin may enter a period of consolidation before making another move.
Related reading: Dollar (DXY) reaches inflection point, critical level for continuation of crypto
The technical indicators also support a sideways movement in the near term as the two arms of the Relative Strength Index (RSI) remain above the midpoint of 50. It should be noted that the latest price action coincides with a surge in bitcoin network activity near all-time highs.
This matches well with some bullish market sentiment and shows that a good part of the recent rally is based on strong fundamentals. But given the current market conditions, a new narrative may be needed to propel Bitcoin to a new all-time high.
Bitcoin is likely to remain in a consolidation phase until more investors take a second look at the asset’s potential. This suggests a balance in the buying and selling pressure and signals an indecisive market. As such, Bitcoin is likely to remain in a tight range, only breaking out when a strong catalyst arrives.
Going forward, if bitcoin breaks the $25,000 level, it could trigger further upside momentum. On the other hand, if it doesn’t break through, it could mean the rally is over and bitcoin will be at risk of a correction. Therefore, it is important that traders monitor the $25,000 resistance for potential breakouts or breakdowns.
Bitcoin network to experience growth with ordinary NFTs
The Bitcoin network has continued to experience growth with the rise in the trend of NFTs minted on the blockchain. Ordinal NFT began to be marketed through social networks at the beginning of the year.
So far this year, more than 130,000 NFTs, mostly images and text files, have been minted on the Bitcoin network, according to data from Dune. Although it is unknown how many total sales were made of these NFTs, some documents estimate that collections such as Ordinal Punks have already raised millions of dollars. This is apparently through sales organized in private groups.
Related reading: $212 million flushes into crypto futures as Bitcoin rises above $24,000
All this has led to controversy among some bitcoiners who reject the fact that this type of asset is being uploaded to the network and believe it could have harmful effects in the future.
– Featured image from Unsplash.com, chart from TradingView.com
