Bitcoin (BTC), the largest cryptocurrency on the market, made a fake attempt to break the $27,500 mark on Tuesday. It has since traded sideways, moving within a narrow channel.
The 50-day moving average, which is the nearest resistance, is $27,200. Meanwhile, the strongest support is at the 200-day MA, placed at $25,200.
For Bitcoin to start a fully formed bull run in the market, it is essential to hold this level of support. If BTC bulls expect another attempt to cross the USD 30,000 mark and propel the market full steam ahead, the USD 25,200 support level is crucial, and it must be held to achieve this goal.
XRP and LTC poised for breakouts as Bitcoin targets $28,000
The lower time frame for Bitcoin is clear, according to to cryptocurrency analyst Michael Van de Poppe. He believes that if BTC is to continue its uptrend, it must break the USD 26,800 level. If that level is broken and flipped, Van de Poppe predicts $27,500 is a likely next target, with the possibility of further breakouts on XRP and Litecoin (LTC).
Van de Poppe’s analysis is based on technical indicators and market trends. He emphasizes the importance of the USD 26,800 level as an important resistance level to be overcome in order for BTC to gain momentum. The cryptocurrency is trading in a narrow range and a breakout could signal a shift in market sentiment.
Van de Poppe’s predictions are consistent with the overall 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, revisits 200-week MA despite downside volatility
According to according to cryptocurrency analyst Rekt Capital, BTC is currently in a period of stability. If this stability continues, BTC could revisit the USD 27,600 level and possibly break out. However, BTC is still testing the 200-week moving average, despite the downside volatility below it during the week.
In addition, BTC is currently trading below a series of Lower Highs, which is represented by the blue line on the chart. To move higher, BTC must invalidate this series of Lower Highs.
On the other hand, the 200-week MA acts as support, as indicated by the orange line on the chart. Together, these factors create a pennant-like structure, a pattern that typically indicates price compression and is often followed by a period of volatility.
Rekt Capital’s analysis suggests that BTC is at a critical juncture, with the potential for a breakout or collapse depending on how it interacts with the 200-week MA and the series of Lower Highs.
Despite the potential risks, many investors remain bullish on BTC and other cryptocurrencies, with the overall market continuing to show strength and resilience. As institutional adoption of cryptocurrencies continues to grow, demand for BTC and other digital assets is expected to increase, potentially driving prices higher in the long run.
Featured image from iStock, chart from TradingView.com
