Bitcoin (BTC), the largest cryptocurrency on the market, made a fake attempt to break through the $27,500 barrier on Tuesday. Since then, it has been trading sideways, moving within a narrow channel.
The 50-day moving average, which is the nearest resistance, is at $27,200. Meanwhile, the strongest support is at the 200-day MA, located at $25,200.
For Bitcoin to start a fully formed bull run in the market, it is essential to hold this support level, if BTC bulls expect another attempt to break the $30,000 mark and drive the market full force, the support level of $25,200 is crucial, and must be realized to achieve this goal.
XRP and LTC Set for Breakouts as Bitcoin Targets $28,000
The picture of the lower time frame for Bitcoin is straightforward, to cryptocurrency analyst Michael Van de Poppe. He believes that for BTC to continue its uptrend, it needs to break above the $26,800 level. If that level is broken above and flipped, Van de Poppe predicts that $27,500 is the next likely target, with the possibility of more breakouts in XRP and Litecoin (LTC).
Van de Poppe’s analysis is based on technical indicators and market trends. He highlights the importance of the $26,800 level as a key resistance level that needs to be broken for BTC to gain momentum. The cryptocurrency has been trading in a tight range and a breakout could signal a change in market sentiment.
Van de Poppe’s predictions align with the general bullish sentiment in the cryptocurrency market, with many analysts expecting BTC to continue its upward trajectory. However, there are also concerns about possible price corrections and volatility, which could affect short-term market movements.
BTC in period of stability, revisiting 200-week MA despite downward volatility
For cryptocurrency analyst Rekt Capital, BTC is currently in a period of stability. If this stability continues, BTC could revisit the $27,600 level and potentially break out. However, BTC is still retesting the 200-week moving average despite the downside volatility below it during the week.
Furthermore, BTC is currently trading below a series of lower highs, which is represented by the blue line on the chart. To move higher, BTC needs to invalidate this series of lower highs.
On the other hand, the 200-week moving average is acting as support, as indicated by the orange line on the chart. Together, these factors create a pennant-like structure, which is a pattern that generally indicates price compression and is often followed by a period of volatility.
Rekt Capital’s analysis suggests that BTC is at a critical time, with the potential for a breakout or collapse depending on how it interacts with the 200-week MA and series of Lower Highs.
Despite the potential risks, many investors remain bullish on BTC and other cryptocurrencies, and the broader market continues to show strength and resilience. As institutional adoption of cryptocurrencies continues to grow, demand for BTC and other digital assets is expected to increase, which could drive prices higher in the longer term.
Featured Image from iStock, Chart from TradingView.com