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Recently, the market has seen a strong correction due to the rise in the price of Bitcoin for the past few days. On December 7, 2020, the price made a low of $19,030.09, which is considered a new all-time low.

However, the appearance of a double dip pattern has led to an optimistic view of this correction.

Bitcoin can rebound, as is now more evident. Obviously, there will be challenges along the way. The current Bitcoin price dynamics are one of the major challenges in cryptocurrency.

The current momentum is only reversing past downtrends, so it might not be enough to break through the $25,000 price level, according to the latest analysis.

Bitcoin Price: The Familiar Resistance Level

Bitcoin’s price actually reached $25,000 at the end of August, which is a significant milestone. Such a trend indicates that the current market has the potential and will likely attempt to break through resistance.

Chart: TradingView.com

Looking at the range over the past four hours, it looks like BTC will be trading between $19,226 and $24,286 at the moment.

This challenge is attributable to traders’ pessimism in response to the latest CPI report. The survey revealed an annual inflation rate of over 8%.

This dismal record could be followed by a 1% rise in interest rates. Therefore, bulls need to hold their position within the $19,226 range to build momentum.

The prominent oscillator indicator showed a bullish advance. On the other hand, the moving averages showed bearish indicators.

Lasting momentum much needed for Bitcoin

To continue driving the price higher, the bulls must generate persistent momentum. Again, durability will reduce the likelihood of a dramatic correction.

Bitcoin price is not expected to drop below the 71.60 Fibonacci level. If the bears cross lower, the price of Bitcoin could fall to $18,000.

This event will further lower the price. Sustained momentum for a rally should be one of the main targets for the bulls in order to break above the $25,000 threshold.

However, given the current pessimism and panic in the market, it may take some time before BTC hits the $25,000 barrier.

BTC total market cap at $384 billion on the 4-hour daily chart | Source: TradingView.com

Featured image from Business World IT, Chart: TradingView.com



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