On September 29th, Bitcoin, which many analysts have identified as a critical resistance level, is trying to hold above the $27,000 level. Despite macroeconomic data and statements from the Fed, Bitcoin is making its best effort to stay strong, but market conditions are preventing it.
Data from TradingView shows us that Bitcoin is now looking to maintain its gains after a classic price consolidation and trying to prevent many losses that occurred this month. Bitcoin managed to break the $27,000 resistance level recently but couldn’t hold above it.
Bitcoin climbed to the $27,300 level on crypto exchanges but did not sustain these levels after a subsequent decline. However, at the time of writing, it has risen up to 4% weekly. Prominent investor Skew, who analyzes price movements in lower time bars, attributed this increase to the futures market and stated that spot investors sold their assets during this rise, sharing the following statement with his followers:
“There is a short-term rise, but there is a clear spot absorption around the highest level. Therefore, the $27,200 level is an important price area that needs to be cleared for spot buyers. The upward movement is due to most spot tracking prices (short liquidations and strong futures bids) from the futures market.”
Skew later shared that $27,200 remained a clear resistance level during the day before Wall Street opened. The investor warned that both long and short investors would likely incur losses in the coming week.
According to data from CoinGlass, $22 million in liquidations on September 28th resulted in the biggest loss of the last ten days. This situation also indicated that investors who preferred short trades suffered significant losses.
In addition to all these developments, a famous investor and analyst, who shares under the name Moustache on social media, mentioned an important support gain along with a chart. The investor drew attention to the 20-month simple moving average (SMA) and stated that this situation could lead to a significant formation beyond the daily price movements in the long term:
“BTC has returned above the SMA 20 average. If Bitcoin closes above this line tomorrow, the rise in August can be considered a fake breakout. This structure would cause an incredible rise.”
The investor also drew attention to the Bitcoin price that crossed above $28,000 in August. Historically, after the 20-month SMA reached its all-time high in the BTC/USD pair, it continued to gain back, indicating support for this event.