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  • Writer's pictureanalysiswatch

Title: Is Bitcoin Heading Towards $25,000?

Jul 25, 2022 03:00AM ET

By: AnalysisWatch

The prices of the cryptocurrency have already touched the so-called upper Bollinger Band, which could indicate sustained upward movement.

Some analysts acknowledge that BTC and the other cryptocurrencies are still stuck in a bear market whose end is uncertain.

Bitcoin has managed to recover after the fall caused by the sell-off of Tesla’s positions in the cryptocurrency.

The unusual rebound of Bitcoin (BTC) over 30% from its June lows makes analysts think that the bear market that has hit the cryptocurrency in recent months could be ending soon.

The signs of a further approach towards $25,000 are due to the fact that BTC prices have hit the so-called upper Bollinger Band, says Bloomberg. This occurs after a period in which volatility was compressed, which is often interpreted as “a precursor to a sustained directional move,” the publication states.

Something similar happened in June when a period of low volatility was observed, which then caused Bitcoin to slide, just after marking the lower band. On Friday, July 22, BTC rebounded again after a decline the previous day.

Resisting Tesla’s Sell-Off

The cryptocurrency’s drop on Thursday came after Tesla announced a Bitcoin sell-off. Elon Musk’s car company sold 75% of its cryptocurrency holdings.

Despite the losses, Bitcoin was able to resist and recover by passing the $23,000 barrier. However, it has yet to reach the high of $24,200 it made for the week.

Musk’s Clarification on the Sale of BTC

Regarding Tesla’s move to sell 75% of its Bitcoin, Elon Musk clarified during a company earnings results conference call that this sale should not be considered a Bitcoin verdict.

He explained that the real reason was uncertainty over how long the COVID-19 lockdowns in China will last, raising concerns for the company’s production. “It was important to us to maximize our cash position

At 10:35 a.m., Bitcoin was trading at $23,504, according to Coindesk, posting a 5.04% gain during the day.

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