- Bitcoin price shows a sharp rebound from the $19,547-$19,784 support zone.
- Investors can expect BTC to cause a surge to retest the $25,000 psychological level.
- A daily candle near the $18,500-$19,909 demand zone will refute the bullish thesis.
The price of bitcoin is showing resilience, rebounding from the August low, indicating that there are willing buyers. In a shorter time frame, BTC reversed the bullish structure of the market, further confirming a potential reversal.
Bitcoin price ready to make hay
The price of bitcoin reversed the 23% gain it saw between September 7-13 and fell 15% between September 13-16. This sudden move is the result of the announcement of the Consumer Price Index (CPI).
As a result, BTC set a swing at $22,850 and fell to retest the twelve-hour demand zone extending from $18,500 to $19,909, which is one of the main reasons a reversal seems likely here.
Despite numerous attempts, sellers failed to break above the August low of $19,539, indicating that there are willing buyers. Going forward, investors may expect BTC to attempt to recover, which could, after sufficient momentum build, result in a higher high above the recently formed high at $22,850.
If BTC manages to do the same, it could extend the cycle to $25,000 retest, which is the midpoint of the 45% crash between May 31st and June 18th.
BTC/USDT 1-day chart
While bitcoin prices are improving in terms of shorter time frames, the macro outlook still calls for a cut. Therefore, if the sellers come back and create a daily candle near the twelve hour demand zone extending from $18,500 to $19,909, it will create a lower low and refute the bullish thesis. This event could send BTC down to $17,593, which is in line with the swing low formed on June 18th.