On the 4-hour time frame, the situation is interesting. There is an ascending trend line, from which the price has already bounced several times, forming pivot points. At the same time, bitcoin failed to break the level of $25,211 in several attempts. This level is seen as the last obstacle preventing the price from reversing to the bullish trend. As of now, bitcoin is stuck between the trend line and the level of $25,211, and the distance between them is quite short. If the price manages to hold below the trend line, then it may again take a course to the levels of $18,500 and $17,582. According to the daily time frame, the cryptocurrency is in the side channel, and a downward spiral would be very helpful. Otherwise, bitcoin will need to break the level of $25,211 which would mean a high probability of further growth.
As mentioned in the previous reviews, the further growth of the cryptocurrency is unlikely. There are simply no serious and strong factors for this. Therefore, the trend line is most likely to be broken. Some experts still expect that bitcoin will reach $30,000 in 2023 or $100,000 by 2025. These are probable scenarios, but it may turn out to be a banal pump scheme. Many experts who are not personally interested in the growth of bitcoin are guided by a simple rule. If over the past 15 years, bitcoin has been steadily growing, it will continue to grow in the future. Therefore, it is quite easy for them to predict that bitcoin will grow. We believe that bitcoin will not show constant growth. On the contrary, it will consolidate and stabilize with the growth of acceptance in the world. The more people willing to invest part of their funds in bitcoin, the more difficult it will be to rise, as there will be more market participants. Therefore, in any case, we are skeptical about the forecast of $100,000.
Also, we consider bitcoin to be of no practical use. It is not backed by anything, unlike gold or stocks. In any case, unless the Fed and other central banks around the world start signaling the rejection of further rate hikes, we do not expect strong growth in bitcoin. But it never hurts to pay attention to technical signals.
On the 4-hour timeframe, bitcoin retreated by $2,500 from recent highs and failed to break the level of $25,211. We believe it is wise to go short near the $24,350 level with an immediate target of $20,400. The sell trades should be closed in case the price breaks the level of $25,211. If the level of $25,211 is broken, then it will be relatively safe to open buy deals with a target of about $29,750.
