Bitcoin has made a strong comeback wiping out its losses from the FTX collapse. After slipping to 15,000, Bitcoin has managed to rise further heading toward the 25K level. The price is currently trading around 23K on the back of a rising equity market and a weaker dollar. The spike is influenced by options market traders who shifted their sentiments toward a bullish trend. The hash power hit an all-time high yesterday. Institutional investors have increased their buying power of bitcoin with 85% of buyers coming from American institutional players. The digital gold holds its upbeat moment as investors are selling their reserves to replenish capital and prepare for market reversal. This slows down the volatility until the Fed’s decision next Wednesday.
The digital gold rallied towards a key resistance and is currently consolidating near 23K. The short-term uptrend remains bullish supported by a bullish Bollinger. The RSI reaches its highs signifying a risk of a correction in the short term. MACD preserves a buying signal. A rise above 23,150 will extend the bullish signal toward 23,800 and open the door toward 24,475. A breakthrough here will expose 25,134. On the flip side, a fall below 22,441 will extend the bearish trend toward 21,825 and open the door toward 21,497. A breakthrough here will expose 20,624.
Key levels to watch from the upside 23,150, 23,800, 24,475, 25,134– from the downside 22,441, 21,825, 21,497, 20,624.