The Dow Jones Industrial Average fell for the third consecutive week but Bitcoin (BTC) price decoupled and is on track to close the week near the strong overhead resistance at $25,211. This suggests that the wider crypto market recovery is on a strong footing.
After Bitcoin’s sharp rally from the lows, analysts remain divided in their opinion about its next move. Some traders believe that the current Bitcoin rally will turn down once again, while others expect the momentum to continue, starting a new bull phase.
Crypto market data daily view. Source: Coin360
Chances are that Bitcoin and several other cryptocurrencies will continue to rally until a vast majority of the bears turn bullish. After that happens, a sizable dip is likely. That could shake out several weak hands and give an opportunity to the stronger hands to add to their positions. A higher low followed by a higher high may confirm the end of the bear phase and signal the start of the next bull market.
Meanwhile, select altcoins are looking strong and they may follow Bitcoin higher in the near term.
Let’s look at the charts to determine the critical levels to keep an eye on.
BTC/USDT
Bitcoin is trading near the stiff overhead resistance at $25,211. The small trading range days on Feb. 18 and Feb. 19 indicate that bulls are not hurrying to book profits and the bears are wary of shorting at the current levels.
BTC/USDT daily chart. Source: TradingView
The upsloping moving averages and the relative strength index (RSI) near the overbought territory indicate that bulls are firmly in command. A tight consolidation near a stiff overhead resistance usually resolves to the upside. If buyers catapult the price above $25,250, the BTC/USDT pair could accelerate to $31,000, as there is no major resistance in between.
Conversely, if the price dumps from the current level, it could find support at the 20-day exponential moving average ($23,115). The bears will have to pull the price below $22,800 to break the bullish momentum. The pair may then collapse to $21,480, which is likely to act as a strong support.
BTC/USDT 4-hour chart. Source: TradingView
The bears…
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