Bitcoin (BTC), the largest cryptocurrency in the market, made a fake attempt to breach 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 moving average, at $25,200.
In order for Bitcoin to start a fully formed upward movement in the market, it is necessary to hold this support level, if the BTC bulls expect another attempt to breach the $30,000 mark and push the market with full force, then the $25,200 support level is crucial, and it needs a decade to reach This goal.
XRP and LTC are poised for a breakout as Bitcoin eyes $28,000
The Bitcoin lower time frame picture is pretty straightforward, according By cryptocurrency analyst Michael Van de Poppe. He believes that in order for BTC to continue its upward trend, it needs to break the $26,800 level. If this level is breached and reversed, Van de Poppe predicts that $27,500 will be the likely next target, with further breakouts likely for XRP and Litecoin (LTC).
Van de Poppe analysis is based on technical indicators and market trends. It highlights the importance of the $26,800 level as a major resistance level that must be overcome for Bitcoin to gain momentum. The cryptocurrency is trading in a narrow range, and the breakout could signal a shift in market sentiment.
Van de Poppe’s predictions align with the general bullish trend in the cryptocurrency market, with many analysts anticipating BTC to continue its upward trajectory. However, there are also concerns about possible price corrections and volatility, which may affect market movements in the short term.
BTC is in a period of stability, revisiting the 200-week moving average despite the negative volatility
according According to cryptocurrency analyst Rekt Capital, BTC is currently in a period of stabilization. If this stability holds, BTC could revisit the $27,600 level and possibly break. However, Bitcoin is still retesting the 200-week moving average despite negative fluctuations below it during the week.
Moreover, Bitcoin is currently trading under a series of lower highs, which is represented by the blue line in the chart. To move higher, BTC needs to negate this series of lower highs.
On the other hand, the 200-week moving average is acting as support, as indicated by the orange line in the chart. Together, these factors create a pennant-like structure, a pattern that usually indicates price pressure and is often followed by a period of volatility.
Rekt Capital’s analysis indicates that BTC is at a critical juncture, with the potential for a breakout or crash depending on how it interacts with the 200-week moving average and the series of lower highs.
Despite the potential risks, many investors remain bullish on Bitcoin 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, which could lead to higher prices in the long run.
Featured image from iStock, chart from TradingView.com
