- Bitcoin is eyeing up a move to $32,000 following a push to $25,000
- The crypto market has put on over $250 billion since the turn of the year
- Where is Bitcoin heading next?
Bitcoin’s bumper move yesterday led the market into untrodden territory in recent weeks, taking it to the verge of $25,000. The entire market has seen over $250 billion flooding into it since the turn of the year, and the question on everybody’s lips is ‘where could it go next?’. Let’s have a look and see what the current position is.
Bitcoin Surges into Resistance
The clearest way of viewing Bitcoin’s current position is through the weekly chart:
As we can see, Bitcoin has been on a tear since the start of the year, putting in the kind of performance reminiscent of early 2019, as we have discussed in other articles. In tapping $25,000 it has hit a level of resistance that has proved stalwart on multiple occasions since August last year, and it is this area that is crucial to Bitcoin continuing its uptrend.
There are two ways Bitcoin could play out at this crucial level. If it can finally crack this level of resistance and treat it as support then a rally to $32,000 is on the cards, given the momentum it currently has:
However, if the current level once again proves too strong to conquer we would see a withdrawal to the next line of support:
RSI Suggests Bitcoin is Overbought
So which will it be? Of course we don’t know, but there are serious signs that Bitcoin is overbought at this level, such as the Stoch RSI which is at a level not seen since the peak of the bull run back in 2021:
This tap into heavy resistance added to the fact that Bitcoin is as frothy as it was when it was at $69,000 suggests that a rest here is more likely, although with Bitcoin in this mood we certainly wouldn’t rule anything out.