The price of Bitcoin (BTC) strengthened its upward momentum on the first day of the week and slowed down after breaking the $27,000 resistance. This significant climb brought sensitivity to most cryptocurrencies; the price of the altcoin king Ethereum (ETH) surpassed $1,600 but also slowed down around $1,650. Other top-level altcoins such as XRP, Cardano (ADA), and Toncoin (TON) also showed an impressive performance. The total market value also increased by 1.4% and reached the threshold of $1.1 trillion. All of these indicate that the bulls have taken control again. So what’s next for Bitcoin, let’s take a closer look.
Bitcoin Price Tries to Hold Above $27,000 Resistance Level
Due to the accumulation of sellers at the $27,200 level, the price of BTC is currently slowing down around this level and trading at $27,218 near the resistance. The nearest support level in the downward direction is at the upper range channel boundary and the 200-day Exponential Moving Average (EMA) at $26,652. The horizontal trend in the Moving Average Convergence Divergence (MACD) indicator indicates that the bulls briefly took control.
Analysts closely followed by Crypto Faibik believe that the bulls need to break the $27,000 resistance in order to fully take control. According to the analyst, if the bulls manage to hold the price above the $27,000 resistance, a rally targeting the $31,800 resistance can be expected. However, Crypto Faibik warned that the $27,000 resistance will continue to be strong and if the price retreats from here, the $25,000 level could be revisited.
In the event of a potential decline, it is important for the price to hold above the $26,652 support level, which corresponds to the range resistance. If selling pressure peaks due to any increase in short-term investors taking profits, a sell signal may come from the MACD.
The negative outlook along with the potential decrease in the BTC markets due to the downward trend in the Money Flow Index (MFI) will indicate that the mini rally to $27,200 is unsustainable. The 50-day EMA (red) and the 100-day EMA (blue) indicate that if Bitcoin’s price retreats from the $27,000 resistance, the $26,448 and $26,340 levels will serve as support.
Bitcoin Whales Accumulate BTC
The cryptocurrency market gives mixed signals, causing both bearish and bullish sentiments to occur at the same time. While some believe that the price of Bitcoin will drop to $15,000 and a catalyst triggering a bull run will follow this drop, others say that a possible drop to $22,000 is likely before the next major rally begins.
Meanwhile, whales continue to take advantage of the buying opportunity, considering that wallet addresses holding 1-10,000 BTC account for 66% of the volume entering cryptocurrency exchanges. The increase in the Coinbase Premium Index, according to the on-chain data platform CryptoQuant, indicates an increase in accumulation on the spot exchange.
The open positions in the futures market, which are currently over $1 billion, confirm a positive funding rate and then the dominance of long-term investors and optimistic sentiment.
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