- Bitcoin price grapples with the 200-week SMA at $25,111, which coincides with the three-day resistance level, making this confluence a make-or-break scenario.
- The MRI shows the development of a premature sell signal on the weekly chart, indicating the potential for a quick pullback or a full-blown reversal.
- Invalidation of the bullish thesis will occur if BTC produces a lower low below $20,800.
Bitcoin price shows a clear struggle near a crucial psychological level on the weekly and three-day chart. While a flip of this hurdle could lead to an explosive move, a failure could result in undoing the year-to-date (YTD) rally.
Also read: Could Bitcoin price rally to $34,000 and crash by 38% by the second half of 2023? Analyst says yes
Bitcoin price is at a crossroads
Bitcoin price has rallied 48% YTD as it currently auctions at $24,873. There have been multiple attempts on the daily timeframe to overcome the $25,000 confluence-backed psychological resistance.
In addition to being a psychological level, the Momentum Reversal Indicator (MRI) suggests the presence of a resistance level at $25,207 on the weekly chart. And the three-day chart’s MRI reveals a breakout line present at $25,424. To make matters worse, this level also coincides with the 200-week Simple Moving Average (SMA) at $25,111.
Therefore, the range from $25,000 to $25,400 is a key resistance confluence zone that needs to be overcome for a bullish continuation. Assuming this barrier is flipped into a support level by a spike in buying pressure, the next level that Bitcoin price will retest is the $30,000 psychological level.
BTC/USDT 1-week, 3-day charts
While things are looking on the fence for Bitcoin price, investors need to be cautious in opening any swing positions. With the way things are right now, BTC could sway either way. However, a firm rejection at the $25,000 psychological level followed by massive profit-taking could skew the odds in the bears favor.
If such a development leads to a three-day or a weekly candlestick close below $20,800, it would create a lower low and invalidate the bullish thesis. This situation could further trigger panic selling and plummet Bitcoin price to $16,671 and even the $15,000 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Axiom’s volume surpasses $100M as meme trading platform war escalates on Solana
Axiom meme coin trading volume hit $101 million for the first time, surpassing other platforms on Solana. Axiom accounts for 30% of the ecosystem’s trading users, followed by Photon and Bullx at 24% each.
Bitcoin aiming for $95,000 as Global M2 money supply surges
Bitcoin (BTC) price edges higher and trades slightly above $85,500 at the time of writing on Tuesday after recovering nearly 7% the previous week. The rising Global M2 money supply could be a favorable signal for both Gold and Bitcoin.
Top 3 gainers Brett, Story and Virtuals Protocol sparkle as Bitcoin eyes $90,000
Cryptocurrencies have sustained a buoyant outlook since last week as US President Donald Trump’s tariff war was paused for 90 days, except for China, propping global markets for lifeline relief rallies.
Three altcoins to watch this week: ALGO, MANA and JASMY show bullish signs
Algorand, Decentraland and JasmyCoin hovers around $0.19, $0.27, and $0.015 on Tuesday after a double-digit recovery last week. ALGO, MANA and JASMY approach their key resistance levels; breakout suggests a rally ahead.
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.