Data from TradingView shows that Bitcoin has risen by 5.5% in the last 24 hours, surpassing $26,000. Investors remain optimistic, considering $27,000 as the next resistance level. However, some analysts caution to be mindful of technical resistance levels. Keith Alan, the co-founder of Material Indicators, emphasizes the importance of $24,750 and various opinions about the future of the crypto market are being discussed.
According to the data obtained from TradingView, the largest cryptocurrency held most of its 24-hour gains, reaching a total of 5.5%. At the time of writing this article, $26,000 was a focal point and marked as an important support line for Bitcoin bulls to recover. Popular investor Jelle addressed his X subscribers in one of the posts during the day:
“Here we go, lower ranges have been regained. Now I want to see another test of $27,000.”
Another investor, Crypto Ed, went even further and hoped for a journey to $28,000 in short time frames, addressing his followers with a chart analysis on X.
However, Keith Alan, the co-founder of on-chain data monitoring source Material Indicators, warned that there is significant resistance in the form of various moving averages (MAs). Material Indicators successfully predicted the last rally and Alan continued to emphasize the importance of the $24,750 level as support. In a section of Alan’s recent comment, the following statements are included:
“There is a ton of technical resistance starting with the Death Cross between the 21-Day MA, 50-Day MA, and 200-Day MA, and ultimately the 100-Day MA intersecting with high ranges. $24,750 continues to be the critical level that needs to be held to keep this rally alive. Focus on how Bitcoin interacts with these levels as it approaches.”
Alan also added that the long-term picture remains the same. He said not to expect a straight rise towards the top of the range and continued:
“Breaking any of these resistance levels requires the bulls to gather some strength and graze a bit before following the next level of the herd.”
Meanwhile, investment platform QCP Capital, which provided a brief overview of the rest of the third quarter, warned that Bitcoin and other crypto assets face many potential selling pressures. In addition to macroeconomic triggers such as the upcoming decision on interest rates by the US Federal Reserve, there are also sector-specific obstacles ahead. In its latest market update released on September 12, QCP referred to the intensity of upcoming downward events that will become neutral from mid-October:
“This includes likely higher-than-expected CPI tomorrow and a more hawkish-than-expected FOMC next week, as well as FTX token asset sales and Mt. Gox to restrict operations next month. So while our theory implies a bottom in early next month, we believe the actual bottom completes the course of the bad news cycle in mid-October.”
QCP also added that it expects a reversal to “bullish” at the end of the year and the beginning of 2024.