The Bitcoin (BTC) price has once again failed to break the $25,000 mark, a psychologically important level for investors. This rejection of the milestone has left many wondering why dips in the cryptocurrency market remain attractive.
The markets achieved a new weekly high near $25,275 and shortly thereafter, the price started to take a sudden nosedive. It dropped significantly below both the $24,500 and $24,200 levels.
Eventually bottoming out at the 50% Fibonacci Retracement level of its impressive upwards trajectory from the swing low of $21,505 to its eventual peak of $25,275.
One explanation could be that after a historic year of growth, investors are looking to capitalize on short-term consolidation periods. They may be looking for short-term trading opportunities by buying dips as they occur.
Additionally, dips may also provide an entry point for those who missed out on previous rallies.
BTC losses on the rise?
A failure to break through the $24,400 level could result in bitcoin continuing its downward trend. Immediate support lies near the $23,400 zone and the trend line. However, if that fails to hold, there is a possibility of further bearish movement.
The next major area of potential support is located around the $22,950 mark. This is also close to the 61.8% Fibonacci retracement level of the upward move from the $21,505 swing low to the $25,275 high.
If this support level is breached too, it could open up a pathway for additional declines in price. The price may decline towards the next major support at $22,750.
However, if that is broken as well, then bitcoin’s value may drop even further toward its next significant support point at around $22,200.
