Bitcoin has failed another attempt to climb above the $25,000 mark, falling to the $24,600 level. BTC price action has been consolidating above the 24,500 level and experiencing a sideways movement for the past five days.
The research and data analysis firm Material Indicators (MI) has found a “Notorious B.I.D,” a wall comprised of bids or buy orders on crypto exchange Binance, trying to push the price of Bitcoin above the possible last resistance to reach new yearly highs, as noted on a Twitter post.
As reported yesterday by NewsBTC, Material Indicators has spotted a big whale running the Binance order books, spreading the ask liquidity from the $25-25.5K levels and narrowing the resistance zone. From a technical analysis perspective, the $25,000 roof should serve as a local top, according to MI.
As seen above, the Notorious B.I.D will attempt to waste the $25,000 resistance level has also failed and trapped the price of Bitcoin within the range formed last week. For now, Bitcoin is trying to hold the support level of $24,000 to avoid another pullback to the $23,000 zone. Material Indicators stated:
The Notorious B.I.D. wall moved again. IMO, until we see full candles above the 200 WMA, this is still distribution in a bear market rally, and with the bid wall above $24k, shorting from this level has about as much short-term risk as longing.
Can Bitcoin Overcome The Next Resistance?
The $25,000 resistance level for investors has been a “hard nut to crack” after four failed attempts. Bitcoin’s recent rally was primarily driven by increased stablecoin supply on exchanges. These altcoins were used to buy Bitcoin, allowing the price action to regain previously lost territory in the 2022 bear market. But does Bitcoin have enough fuel to overcome the next resistance?
According to a Twitter post by research and data analysis firm Blofin, there are more ask orders than bid orders reflected in the order flow. This indicates that the selling power among the bears is strong and that the Bitcoin price action may not be able to break through the upcoming resistance in the short term.
This may mean that all hope is not lost for the bears. Bitcoin must completely break the bearish structure to establish a bullish trend. The price may retest the previously conquered levels if Bitcoin breaks below the $24,000 support level.
BTC is currently trading at $24,500, a loss of 1.3% in the last 24 hours. As the hours go by, so do Bitcoin’s gains at the beginning of the year. In the seven-day timeframe, Bitcoin is still in the green with an increase of 12.7%, and in the 30-day timeframe, BTC holds gains of 8%, which is a significant decline after an intense uptrend price action.
Featured Image from Unsplash, chart from TradingView.
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