Crypto News– Bitcoin had an exciting day on Monday as it pushed through a key resistance at $27,000. However, it hit a temporary roadblock at that level. This positive move had a ripple effect on the cryptocurrency market, with Ethereum managing to climb back above $1,600 but facing resistance at $1,650.
Bitcoin Price Analysis: Breaking Through Range Resistance – Is it a Favorable Moment to Buy In?
Other major altcoins like XRP, Cardano, and Toncoin also had a good day, posting gains of 3%, 2.5%, and 4.5%, respectively. The overall market capitalization for cryptocurrencies increased by 1.4%, reaching $1.1 trillion, indicating a resurgence of bullish sentiment.
Bitcoin’s price action followed a pattern we discussed earlier, and it slipped below the $27,000 level due to congestion around $27,200. Currently, it’s trading at $26,830, finding support at the upper boundary of the range channel and the 200-day Exponential Moving Average (EMA) at $26,652.
The Moving Average Convergence Divergence (MACD) indicator showed a period of consolidation, suggesting that bulls attempted to take control but struggled to find the necessary liquidity to push higher than $27,000. Some analysts, like @CryptoFaibik, believe that the time is ripe for bulls to conquer the $27,000 resistance. If they succeed, they anticipate a rally targeting $31,800.
Bitcoin’s Price Setting Its Sights on Overcoming the $27,000 Resistance Barrier
However, if $27,000 remains a tough nut to crack, we could see a retest of the major support level at $25,000. For the bulls, it’s essential to maintain the $26,652 support level, especially if selling pressure escalates due to short-term traders booking profits, potentially triggering a MACD sell signal.
Considering the possibility of a bearish scenario and the Money Flow Index (MFI) indicating negative fund flows into BTC markets, the recent push to $27,200 might not be sustainable. The 50-day EMA (red) and the 100-day EMA (blue) stand ready to provide support at $26,448 and $26,340 if Bitcoin faces rejection at the $27,000 resistance.
Leave a comment