Bitcoin has rallied once more above $24,000. This impressive rally follows an intense week where the FOMC’s announcement has basically shown that the United States is now in a recession. Investors had flocked to the bitcoin off the back of the news, causing the digital asset to surge immensely during this time. As the digital asset has beat one important technical level, it remains to see if it can beat another.
Accumulation Triggers Rally
There are a lot of factors that usually trigger a rally, such as the one that has sent the price of bitcoin soaring high. One of those has been a renewed accumulation trend from investors who are flocking to the digital asset to provide cover during uncertain economic times. Such a rally, if it continues, can put the digital asset on a well-established bull trend.
Related Reading | Bitcoin Bounces Off Consolidation Range, What Lies In Store?
However, there are still obstacles in the way of bitcoin. This means that even though the digital asset continues to rise now, it could very well witness a reversal trend that sends it spiraling back downwards. To avoid such a fate, it is important that the sellers are completely cut out, replacing these investors and traders with more determined long-term holders.
BTC's hold on $24,000 remains shaky | Source: BTCUSD on TradingView.com
Whales have been a subset that has been trying to reverse the sell-offs. With the decline in bitcoin, it had presented an opportunity for investors to increase their holdings, and it was especially prominent among investors holding between 100-1,000 BTC on their balances.
Can bitcoin Reach $28,000?
Bitcoin’s recovery has put it on an impressive bullish path. However, this bullish trend has not been fully established. It has seen some obstacles along the way, and bears have begun to put up resistance in the market.
An example has been at the $24,000 level. Although bitcoin has been able to beat this level multiple times, it continues to fight a hard battle to hold onto it. The mounting resistance at this point has proven to be an important level for bears to hold.
Related Reading | Elevated Bitcoin Open Interest Levels Puts Market In Vulnerable Position
For the cryptocurrency to reach $28,000, it would have to beat the resistance at $24,000 and further at $25,000. Furthermore, there is an expected resistance at $28,000, given that it was the yearly low for bitcoin in 2021. However, if accumulation continues to ramp up at the rate it is, the digital asset has a good chance of reaching this high.
Featured image from GoBanking Rates, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…