BTC price retreated from Monday’s high of $27,200, gathering momentum ahead of the next attack on the $27,000 resistance level.
On Monday, Bitcoin price reinforced the bullish outlook of the market, breaking through the $27,000 resistance level before abruptly stalling at $27,000. As a result of this notable climb, sentiment improved across most cryptocurrencies, starting with Ethereum reclaiming ground above $1,600 but stalling at $1,650.
Other top altcoins such as XRP, Cardano, and Toncoin also performed impressively, rising by 3%, 2.5%, and 4.5%, respectively. The total market capitalization also grew by 1.4% to $1.1 trillion, which means that bulls are taking back control.
Bitcoin price ready to conquer 27k resistance
BTC price is following the bearish fractal discussed in the previous price analysis. Due to seller congestion at $27,200, Bitcoin price fell below the $27,000 support/resistance level and is currently trading at $26,830.
The confluence formed by the upper boundary of the channel and the 200-day exponential moving average (EMA) (purple) at $26,652 provides support for the near-term downside.
The sideways trend on the Moving Average Convergence Divergence (MACD) indicator suggests that bulls were briefly in control but faltered on Monday and are looking for higher support to gather more liquidity and create momentum for a major move above $27,000.
BTC/USD four-hour chart
Analysts and traders such as CryptoFaibik believe that it is time for bulls to take full control and “conquer the $27,000 resistance level.” He added that “if bulls succeed,” investors should expect a rally to target the $31,800 resistance level.
However, if the $27,000 resistance remains stubborn, a rejection would mean that BTC price could revisit the next major support area at $25,000.
BTC/USD price chart
A firm hold of the immediate support at $26,652, which coincides with the range resistance, must be the priority for the bulls in the coming sessions. If the selling pressure peaks perhaps due to a surge in profit booking activities by the short-term traders, the MACD sell signal could come into play.
The underlying bearish outlook, coupled with negative inflows into the BTC market due to a falling Money Flow Index (MFI) trend, means that a minor rally to $27,200 is unsustainable.
If Bitcoin is rejected by the $27,000 resistance, the 50-day MA (red) and 100-day MA (blue) will provide support at $26,448 and $26,340.
Bitcoin whales are accumulating
The cryptocurrency market is facing mixed signals, bearish and bullish sentiments at the same time. Some believe that Bitcoin has bottomed out at $15,000 and is waiting for a catalyst to rebound into a bull market, while others say that Bitcoin may fall to $22,000 again before the next major reversal begins.
On the other hand, whales continue to opportunistically buy Bitcoin, considering that addresses with 1-10k BTC account for 66% of exchange inflows. According to CryptoQuant, the rise in the Coinbase Premium Index indicates that “accumulation on spot exchanges” is increasing.
Open interest in the futures market now exceeds $1 billion, confirming the positive funding rate and subsequent “dominance and optimism among long traders.”
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【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at your own risk.
