This $25K BTC price target would spell misery for Bitcoin shorters
Bitcoin (BTC) has an important new price target for bulls to meet — and it is closer than it seems.
As noted by Philip Swift, co-founder of trading suite Decentrader, $25,000 is now a critical BTC price level.
After putting in 40% gains in January, Bitcoin continues to consolidate around the $23,000.
Opinions are split as to what will happen next — after more than a year of bear market, plenty of market participants expect a dramatic correction and even new multi-year lows of $12,000 or worse.
Others believe that the good times can continue and even see BTC/USD reach $30,000 before checking its relief rally.
In the meantime, however, some are focused on another line in the sand much closer to current spot price.
For Swift, the area around $25,000 is now especially significant. This, he noted in a tweet on Jan. 24, is where bears begin to get liquidated en masse.
It is also the site of Bitcoin’s 200-week moving average (WMA), a key trend line which has been absent from the chart since the middle of 2022, when it failed to act as support. Bitcoin has since spent a record amount of time below the 200WMA, which currently sits at around $24,750.
“There is a lot of liquidity from $24,700 - $25,900 which lines up with the 200WMA and the area just above it,” Swift commented.
Analysis of an accompanying liquidity chart shows that leveraged short positions will start seeing liquidations once BTC/USD passes $23,400 — so far, this is exactly where the rally has encountered momentum problems.
“This level continues to act as resistance,” trader and analyst Rekt Capital wrote in part of commentary about the topic, noting that Bitcoin’s latest weekly close was also lower.
Such a scenario would mean BTC/USD fails to crack its local highs from
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