The Bitcoin price took a small tick in the night from Tuesday to Wednesday and is currently hanging at $ 24,000. The reopening of the Chinese economy seems to have a positive impact on the Bitcoin price, but according to Gareth Soloway of Verified Investing isn’t that enough. If it is up to Soloway, Bitcoin needs to reach $ 30,000 in the short term to really get going.
First the $25,000
Ultimately, the crypto industry is all about belief and narrative. At the moment there is a positive development going on in Hong Kong, which may lead to Bitcoin becoming legal in China again. According to Soloway, that could be a narrative that can lift Bitcoin over the tricky $25,000 hurdle. “I think the Hong Kong narrative could be something that helps,” said Soloway.
He then points to the 200-week moving average, which is currently at about $25,000. That line, he says, creates a strong resistance level where the bulls get some headwind.
We have already seen that headwind a number of times, because every attempt to lift the price above that level has so far been rejected. It manages to break through it a few times, but staying at that point proved to be extremely difficult for the time being.