Bitcoin price strengthened the bullish outlook in the market on Monday, blasting past resistance at $27,000 before coming to a sudden stop at $27,000. Due to this remarkable climb, sentiment improved for most cryptos, starting with Ethereum reclaiming the ground above $1,600 but stalling at $1,650.
Other top altcoins like XRP, Cardano, and Toncoin are performing impressively, posting gains of 3%, 2.5% and 4.5%, respectively. The total market capitalization has also increased by 1.4% to $1.1 trillion, implying that bulls are taking back the reins.
Bitcoin Price Gearing Up To Conquer 27k Resistance
BTC price respected the bearish fractal as discussed in the previous price analysis. Due to the seller congestion at $27,200, Bitcoin price slipped below $27,000 support/resistance and is currently trading at $26,830.
Support on the immediate downside has been provided by a confluence created by the upper range channel boundary and the 200-day Exponential Moving Average (EMA) (purple) at $26,652.
The sideways trend in the Moving Average Convergence Divergence (MACD) indicator shows that bulls had control briefly but faltered on Monday in search of higher support to collect more liquidity and build momentum for a substantial breakout above $27,000.
Analysts and traders like @CryptoFaibik believe that the time has come for bulls to fully take the reins and “conquer the $27k resistance.” He added that “if bulls succeed” investors should anticipate a rally aiming for the $31.800 resistance.
However, if the resistance at $27,000 remains stubborn, a rejection would mean that BTC price may revisit the next major support area at $25,000.
Holding firmly onto the immediate support at $26,652 which coincides with the range resistance must be the bulls’ priority over the next sessions. If selling pressure peaks up possibly due to a spike in profit-booking activities among short-term traders, a sell signal from the MACD may come into play.
The potential bearish outlook coupled with the negative flow of funds into BTC markets based on the downward trend in the Money Flow Index (MFI) would mean that the mini pump to $27,200 is unsustainable.
The 50-day EMA (red) and the 100-day EMA (blue) are in line to provide support at $26,448 and $26,340 in the event Bitcoin is rejected from the $27,000 resistance.
Bitcoin Whales Accumulating
The crypto market is dealing with mixed signals, bearish and bullish sentiments all at the same time. Some people believe Bitcoin bottomed at $15,000 and is awaiting a catalyst to rally into the bull run, while others say another dip to $22,000 is likely before the next major reversal starts.
Whales, on the other hand, continue to take the opportunity to buy Bitcoin, considering addresses with 1 – 10k BTC account for 66% of the volume to exchange inflows. According to CryptoQuant an increase in the Coinbase Premium Index reveals “accumulation in the spot exchange” is on the rise.
The open interest in the futures market, which is currently above $1 billion confirms a positive funding rate and subsequently “the predominance of long traders and an optimistic sentiment.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.