As of writing, Bitcoin‘s price has climbed above $26,000 and peaked around $26,500. What’s next? Despite altcoins not reacting as much as expected to the surge, investors remain hopeful. With buyers stepping back into the limelight, the importance of some critical zones is intensifying.
Bitcoin Comment
The April survey by Laser Digital among institutional investors revealed that 90% of the participants were ready to invest in crypto if the asset was backed by a “large traditional finance institution”. The recent news from BlackRock may help accelerate the institutional demand. Today’s surge is largely driven by this expectation.
The Glassnode co-founders Yann Allemann and Jan Happel, in their post on June 15th, stated that one traditional technical analysis indicator and two on-chain indicators for Bitcoin appear similar to what we observed right before Bitcoin surged above $20,000 in 2017, and in the third quarter of 2020. If history repeats itself, the anticipated rally for Bitcoin may begin.
Critical Level for Cryptocurrencies
Bitcoin signaled aggressive bear selling when it slipped below the critical support of $25,250 on June 14th. We also saw the price briefly violate this same support before today’s ongoing surge began. Bulls need to secure closes above the 20-day exponential moving average ($26,320) for a stronger rally. The king cryptocurrency is finding buyers at $26,300 as of writing. The price that reached $26,500 a few minutes ago has slightly pulled back.
If BTC can establish a foothold above this region, the rally could continue up to the 50-day simple moving average ($27,210). Contrary to this assumption, if the price turns down from the 20-day EMA, bears will try to pull the price back to the support base.
Bulls are expected to defend this level with all their might because a fall below this could spread the fear of a crash towards the psychologically critical level of $20,000. Considering the SEC’s pressure, it’s likely that altcoins would suffer double-digit losses in this scenario.
