Bitcoin broke through the $25,000 resistance barrier on Tuesday but did not have the strength to hold above, closing below at the end of the day.
Bitcoin made its biggest push to get through the double barrier of the $25,000 resistance and the 200 weekly MA yesterday. It was briefly able to break through both, but towards the end of the day it fell back down again, unable to hold such an important level.
The bitcoin price rose to more than $26,000 at one point, and had it been able to hold, there isn’t really any real resistance between that and $28,000.
Having left a fairly large candle wick above on the daily time frame it may be that the price does not attempt another push yet. The Stochastic RSI, a momentum indicator, is reaching the top on the daily, and a cross back down may confirm that bitcoin is done on the upward surge for now.
Not surprised 26,000 rejected advance pic.twitter.com/nUQkNAtI1t— Peter Brandt (@PeterLBrandt) March 14, 2023
Veteran trader Peter Brandt tweeted out his views on the bitcoin price action. The megaphone pattern he sees may indicate that bitcoin has topped. Should the pattern continue, bitcoin might retreat all the way back down to test the lows at $18,000 and possibly below.
This is called a megaphone or inverted symmetric triangle pic.twitter.com/pCsVUOt8OG— Peter Brandt (@PeterLBrandt) March 14, 2023
This could definitely make sense from a technical perspective, given that this would allow the weekly Stochastic RSI to reset, and enable bitcoin to build further price structure which could give it the foundations for moving higher and eventually see it break the $25,000 resistance later this year.
Bitcoin has surged 70% since it found a bottom only 4 short months ago in November. It could be argued that it has hit the top of the range that extends from $25,000 down to around $17,500. Further accumulation in this range could be forthcoming.
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