The price of BTC dropped from Monday’s high of $27,200, but it’s getting ready for another attempt to break the $27,000 resistance.
On Monday, the price of Bitcoin went up strongly, breaking through the $27,000 barrier. However, it stopped at $27,000. This positive move boosted confidence in the crypto market, with Ethereum climbing back above $1,600 but stopping at $1,650.
Other popular cryptocurrencies like XRP, Cardano, and Toncoin also performed well, with gains of 3%, 2.5%, and 4.5% respectively. The total value of all cryptocurrencies in the market increased by 1.4% to reach $1.1 trillion, indicating that bullish sentiment is on the rise.
Bitcoin Price Prepares to Overcome $27,000 Resistance
The price of BTC followed a pattern we discussed before, and it dropped below the $27,000 level because there were a lot of sellers around $27,200. Right now, it’s trading at $26,830.
There’s some support just below this level, created by where the upper channel boundary meets the 200-day Exponential Moving Average at $26,652.
The Moving Average Convergence Divergence (MACD) indicator shows that the buyers were in control for a bit, but on Monday, they had trouble finding enough support to keep going higher and break past $27,000.
BTC/USD four-hour chart | Tradingview
Some experts, including @CryptoFaibik, think it’s time for the buyers (bulls) to completely take control and break the $27,000 barrier. If they succeed, they expect the price to go up to the $31,800 level.
But if $27,000 continues to be a tough point to break, it could mean that the price of BTC might go down again and test the next significant support level at $25,000.
BTC/USD price chart
It’s crucial for the bulls to keep the price above $26,652, which is also where the resistance level is. If selling pressure increases, possibly because short-term traders are taking profits, the MACD indicator might signal a sell.
There’s a potential negative outlook, and the Money Flow Index (MFI) shows money is flowing out of BTC markets, suggesting that the recent rise to $27,200 might not last.
In case Bitcoin can’t break through the $27,000 resistance and falls back, the 50-day EMA (red) and the 100-day EMA (blue) are likely to provide support at $26,448 and $26,340.
Bitcoin Whales Gathering
The crypto market is sending mixed signals, with some people thinking Bitcoin hit its lowest point at $15,000 and is ready for a big rise, while others believe it might drop to $22,000 before going up again.
But, big Bitcoin holders (whales) are still buying more. They make up 66% of the Bitcoin going to exchanges. According to CryptoQuant, the Coinbase Premium Index is going up, which means more people are buying Bitcoin directly on exchanges.
Also, in the futures market, where people bet on the future price of Bitcoin, there’s over $1 billion being bet, and the people betting are mostly thinking the price will go up, which is a good sign for the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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