On February 24, Bitcoin’s (BTC) trading price steered lower. The asset’s trading value moved below the 20-day EMA, which was recorded at $23,391.
Once the price of the asset was low, the bears were confident they would be able to build up enough selling pressure. Their attempt would have been to bring Bitcoin’s price even lower and see how the bulls would react.
Bears Faced a Failure
Turns out, the confidence and the momentum that the bears had built up were not enough. The bulls were much stronger in spirit and confidence than the bears had imagined.
They did not let them pull Bitcoin’s price any lower than it had already plummeted to. The bulls increased their buying power, which not only sustained the selling pressure of the bears but also pushed Bitcoin higher.
It is important to mention here that prior to the strong rebound, Bitcoin had plummeted to $22,800, a strong support level.
Being able to pull BTC lower than the $23k mark, the bears might have been under the impression that things would be great for future selling sprees as well.
However, they were faced by the bulls backed by strong spirits and sentiments. They kept on pushing harder and that was enough to push BTC over the strong support level.
The price of the asset was pushed much higher than the strong support level in the process. It proved to the bears and the investors that the bulls were ready to buy BTC at the lower levels.
Price Movement on February 25
On February 25, the trading price of Bitcoin recorded a rebound and it started to move in an upward direction. The bulls did not find it difficult to push the token over the strong support level.
They kept on pushing it higher but there is growing power of the bears that may come in the way in the near future.
At the time of writing, Bitcoin’s trading value is over the $23k mark and it is hovering around the $23,425 level. The price analysis shows that the trading price of Bitcoin may continue circulating in a particular zone.
The zone is defined by the top and bottom ranges which are $25,250 and $22,800. As the data shows, the trading price of BTC is indeed hovering in the particular zone.
RSI is Close to the Mid-Level
The relative strength index is currently offering uncertainty to investors because it is close to the mid-level.
It goes to suggest that the trading value may move in any direction, given which sides apply more pressure over the other.
If the bulls increase their buying power then the RSI will move higher than the mid-level, otherwise, it will move in lower.
Bitcoin to Plunge to $21,480
The bearish price prediction suggests that if the sellers are able to increase their selling power, then BTC will move in the lower direction.
The value will continue declining and more investors will continue adding more power to support the downtrend.
With more selling coming in the way of the asset, the trading price of BTC will continue to plummet. As the bears keep increasing their selling power, the trading price of BTC will move lower to $21,480.
BTC Weakens if USD Grows Stronger
Opposite to the sentiments of the bulls, the US Feds also have the ability to move BTC into the darker regions.
This is because the Feds may decide to keep the current monetary policy intact, which means to keep increasing the interest rates.
Doing this means that the dollar will keep gaining strength and its rivals will keep losing theirs. Being a highly valuable asset, Bitcoin falls in the same category as the USD’s rivals.
Given the recent market conditions, it is clear that the Feds will side with their current monetary policy. This would continue pushing the dollar price higher and keep dragging the BTC price lower.