Here’s Why Bitcoin’s Value May Soar Past $25,000

Here's Why Bitcoin's Value May Soar Past $25,000

Gains in value for the largest cryptocurrency can be seen alongside Bitcoin’s rising trend.

As of this writing, Bitcoin’s upward trend has pushed its value against the dollar past the $24,500 mark. If the leading digital token can break through $25,000, it will likely continue its upward trend.

As a result of a severe market correction over the past couple of weeks, Bitcoin’s value has plummeted. The beginning of August, however, brings some relief, as the asset’s price action has been positive.

Some Believe That Bitcoin’s Value Will Increase

Bitcoin’s price made a break above the $24,500 resistance level. As a result, Bitcoin surged past $24,800, coming within striking distance of its 100-day SMA (SMA).

Additionally, the price reached above the $25,000 mark before correcting lower, breaking through the $24,500 support zone simultaneously. However, the price dropped by half at the Fibonacci retracement level. Thus, the range is from $25,045 to $23,600.

Bulls seem to be making progress above the $24,200 support level. The 61.8% Fibonacci retracement level of the uptrend from the $23,600 low to the $25,045 high is also significant support in this case.

In the meantime, Bitcoin formed a crucial bullish trend line with support near $24,400 on the BTC/USD trading chart. Bitcoin prices are currently above $24,000 and the 100 hourly simple moving average.

The evolution of the Bitcoin price relative to the US Dollar. Credit: TradingView

Near the $24,800 support level, buyers will encounter stiff opposition to any price increases. Plus, the next significant barrier to overcome is around $25,000. A price increase may occur if the market closes above the zone of resistance.

The $25,800 registry price is likely to be broken in this case. With more gains, the price could reach the $26,200 level.

Is the Current Downtrend in Bitcoin’s Price Valid?

In an effort to reverse a downward price trend that has persisted for most of 2018, the leading digital asset is making a splash. So, a downward trend would begin if the BTC price couldn’t overcome the $25,000 resistance level. Immediate support is near the $24,600 level on the downside.

In addition, the trend line and the 100 SMA both offer additional support above the critical support level of $24,500. If the bears succeed in pushing the price below the support level, a move to the vicinity of $24,200 is likely to follow. In the event of additional losses, the price could drop to around $23,500.

Bitcoin’s price appears to be at a pivot point. The performance of the tokens has suffered because they were unable to get off to a good start this year.

According to market watchers, Bitcoin’s current state has been impacted by the lack of a sustained price uptrend so far this year. Markets worldwide suffer losses throughout most of 2022 due to rising inflation.

Yet, recent price analysis indicates that the market may be turning around, opening the door for the most prominent cryptocurrency to make a breakthrough.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.