Bitcoin Taps $25K Briefly, Can The Momentum Be Sustained?
The $25K mark remained elusive for Bitcoin (BTC), as the benchmark cryptocurrency fell on Monday after breaching the $25K level for the first time since early June. This rejection has introduced some volatility in the market at the start of the new week, sending BTC on a corrective move to $24K. The question many traders are asking now is: “can the bullish rally continue?”
In what analysts have described as “the last quiet week of the summer,” amid the absence of any market-moving economic reports or meetings from the US, Bitcoin bulls might have a shot at a bullish continuation.
Meanwhile, BTC remains strong on the ‘fundamental’ front as the network is expected to show a positive adjustment in its mining difficulty for the second consecutive difficulty adjustment in the next few days. Bitcoin also remains bullish on the derivatives front, with higher prices and bullish data influencing sentiment.
On-chain data shows a growing rise in confidence in Bitcoin as exchange inflows slow considerably. As of yesterday, only 26.4K BTC was deposited on exchanges, a 64% drop from the inflows recorded on Aug. 10.
Bitcoin Price Analysis
As mentioned earlier, Bitcoin slumped to the $24K level in the Asian session on Monday, extending a corrective move from the $25.2K top. However, BTC bulls seem determined to defend the support level and prevent additional declines.
If bulls manage to hold off the correction from breaching the $24K support in the coming near term, a bullish turnaround and a retest of the critical $25K barrier should manifest. This time around, BTC should have enough steam to scale the resistance and approach the $26.5K mark, a price level many believe could mark the end of the bear cycle.
Altcoins Were Not Left Out
Altcoins also had a swell session last week, with Ethereum (ETH) at the core of the rally. Market sentiment lifted last week after Ethereum developers announced the official launch date of the highly-anticipated Merge upgrade, with Ether breaking the $2,000 mark for the first time since May.
However, like Bitcoin, most altcoins have suffered a notable fall over the last 24 hours. At the time of writing, Ethereum, Binance Coin (BNB), Cardano (ADA), Ripple (XRP), Solana (SOL), and Dogecoin (DOGE) all trade down by 4.94%, 3.51%, 5.5%, 5.14%, 6.53%, and 3.44% respectively.
Meanwhile, Shiba Inu (SHIB) emerged as one of the best large-cap performers over the last seven days, bagging 26% in gain (press time data) and jumping two spots to the twelfth-largest cryptocurrency.
BTC Statistics Data
BTC Current Price: $24,200
BTC Market Cap: $464B
BTC Circulating Supply: 19.12M
BTC Total Supply: 19.12M
BTC Market Ranking: #1
This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.