Bitcoin Price Headed Towards $25K After 25% Price Surge

The cryptocurrency market experienced an unexpected downturn in the past three days, despite reaching a total market capitalization of over $1 trillion this week. However, investors are once again celebrating as they see their portfolios returning to profitable status.

Recent news updates, along with a tweet from Binance CEO Changpeng Zhao, played a significant role in turning the market around. According to analysts, the market rebound was a result of the conversion of $1 billion worth of Industry Recovery Initiative funds into native cryptocurrencies like bitcoin, Ethereum, and BNB.

As of writing, the largest cryptocurrency, Bitcoin, is trading at around $24,495 against the USDT pair. In the past three days, Bitcoin saw a significant rebound, causing all other alternative coins (altcoins) to experience a rally as well.

As a result of Bitcoin's surge, other coins like Ethereum, BNB, and many others also saw an increase in value. Ethereum, for example, rose by over 15% and is currently trading at $1,675, while BNB maintains its position at $304 with a gain of 10%.

Bitcoin Price Climbs 25% from a Two-month Low

Source: Tradingview

Buyers experienced a roller-coaster ride as the price of BTC hit its 55-day lowest point at $19,549 on Friday, March 10th. However, the range from $20,000 to $19,550 proved to be a pivotal demand zone, and BTC bounced back from this support level.

On Monday morning, there was a sharp decline in U.S. bank stocks, but Bitcoin's price increased sharply on the same day. This was due to the fear of a similar banking crash on a regional outlet following the failure of Silicon Valley Bank the previous week.

In the higher region, market sellers often sold BTC at the $25,200 zone, so breaking through this hurdle could lead to an ongoing bullish rally until $28,000.

Overnight, trading volume increased by 37% and was reported at $48.3 billion. As per the price action, Bitcoin became bull dominant as it overcame lower-lows and lower-highs formation. Meanwhile, buyers are at a make-or-break territory closer to $25K.

Source: Tradingview

Buyers sought refuge at the 200-day moving average on the daily time frame, which is proving to be a strong support for the bulls. Consequently, BTC remains above this critical moving average. Furthermore, the daily RSI indicator completed a plunge into the oversold zone, and the RSI peak has moved toward the overbought zone.