Bitcoin price is consolidating after finding a strong resistance at the $25,000 level. This year, the main talking point has been the return of the base cryptocurrency price, going from $16k to $24k in just a few weeks.
The trend has continued as Bitcoin crossed the $25k mark for the first time since August 2022 this week, with some experts speculating that $30k might be the next point of resistance. However, this was not the case, and Bitcoin was soon rejected at a price of $25,000.
Bitcoin price experiences a minor correction at $25,000
At the time of writing, Bitcoin is trading at $24,478 and has not been able to decisively breach the $25,000 level. Given the strong rejection at $25K, analysts believe that Bitcoin may enter a period of consolidation before making a new move.
Related reading: Dollar (DXY) is reaching the inflection point, the critical level for the continuation of the cryptocurrency
Technical indicators also support a sideways move in the near term as both arms of the Relative Strength Index (RSI) remain above the midpoint of 50. It should be noted that the latest price action coincides with a surge in Bitcoin network activity which is approaching an all-time high.
This aligns well with some bullish market sentiment and shows that much of the recent rally is based on strong fundamentals. However, given the current market conditions, a new narrative may be required to push Bitcoin to a new all-time high.
Bitcoin is likely to remain in the consolidation phase until more investors take a fresh look at the potential of the asset. This indicates a balance of buying and selling pressures and indicates an indecisive market. As such, Bitcoin is likely to remain in a narrow range, only breaking out when a strong catalyst arrives.
Going forward, if Bitcoin breaks the $25,000 level, it could lead to more bullish momentum. On the other hand, if it fails to break out, it could mean that the rally is over and Bitcoin is at risk of a correction. Therefore, it is important for traders to keep an eye on the $25,000 resistance for any possible breakouts or breakdowns.
Bitcoin Network to Experiment with Growth with Ordinal NFTs
The Bitcoin network has continued to grow with the uptick in NFTs minted on its own blockchain. The marketing of ordinal NFTs via social networks began at the beginning of the year.
So far this year, more than 130,000 NFTs, mostly images and text files, have been minted on the Bitcoin network, according to data from Dune. Although it is not known how many total sales were made from these NFTs, some documents estimate that groups like Ordinal Punks have already made millions of dollars. This, presumably, through organized sales in special groups.
Related reading: $212 million poured into cryptocurrency futures as bitcoin surges over $24,000
All this has led to contention among some bitcoiners who do not agree with the fact that this type of asset is being uploaded to the network and believe that it may have harmful effects in the future.
Featured image from Unsplash.com, chart from TradingView.com