Succession of resistors – Bitcoin (BTC) price recovers $20,000. Markets are rejoicing at this bullish momentum, but the hardest part is yet to come for the bulls for a sustainable bullish recovery.
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Bitcoin price: back to $20,000
The price of bitcoin goes up to $20,430 on Bitfinex today, October 25, 2022. The cryptocurrency is trading at $20,176 at the time of writing. Its price is currently registering a daily gain of 4.04%.
The reconquest of $20,000 is accompanied by a certain renewed optimism in the markets. A few hours before Bitcoin broke this level, the founder of the Eight trading company, Michaël van de Poppe, foresaw a significant breakthrough in Bitcoin within two to three weeks, and then pointed the $30,000 as a likely goal.
Obstacles on the way to $30,000
However, this optimistic outlook must be weighed against the reality of the markets, and in particular the resistances that Bitcoin will have to break through in the space of two to three weeks, on this road to $30,000.
The daily Bitcoin price chart shows the existence of a possible resistance zone between the $20,140 and the $20,340 in the very short term.
Based on recent fluctuations, if the price of the cryptocurrency manages to recross this zone it could:
- either go up to around $21,560 – $21,580, where the opening and closing prices of Bitcoin were respectively on August 26 and September 9;
- either regain the $22,400 which roughly corresponds to the September 13 opening level;
The weekly Bitcoin price chart, meanwhile, shows that to confirm the current breakout, Bitcoin will need to close the week above $20,030. Over this period, the bulls will then have to face a resistance around $21,540.
On a monthly basis, in order to qualify for the $30,000, the price of Bitcoin will need to cross a resistance at $23,530.
Bullish continuity: the weight of the macroeconomic environment
The recovery from $20,000 is therefore certainly an important first step in this objective of $30,000, but the bulls will have to break through many resistance zones before they can reach this level.
This reconquest of the $20,000 comes at a time when the dollar registers sharp declines. A continuous bullish Bitcoin price over the long term is conditioned at least by events that would modify the macroeconomic environment in favor of risky assets.
The successions of rises with the crossing of key thresholds could then set up a sufficient optimism in the markets which would stimulate buying, and which would then push Bitcoin towards $30,000.
Bitcoin is finally getting back above $20,000 as we approach the end of October. This last quarter could indeed see a long upward rally, if the US Federal Reserve confirms the current market forecasts for the next rate hikes.
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