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Bitcoin (BTC) made an attempt to surpass and maintain the $26,000 mark at the Wall Street opening on September 12, as a rapid rebound in BTC prices generated enthusiasm among traders.
BTC/USD 1-hour chart. Source: TradingView
BTC price increases by 5.5% in 24 hours
Data from Cointelegraph Markets Pro and TradingView indicated that the leading cryptocurrency retained most of its 24-hour gains, which peaked at 5.5% at one point.
As of the current moment, $26,000 has emerged as a focal point, previously identified as a crucial threshold for Bitcoin bulls to reclaim.
“There we go, range lows reclaimed. Want to see another test of 27 now,” noted popular trader Jelle in one of several posts on X on September 12.
BTC/USD annotated chart. Source: Jelle/X
Another trader, Crypto Ed, expressed hopes for a rise to $28,000 as the ultimate target on shorter timeframes, with an initial “sweep” of the range lows anticipated.
BTC/USD annotated chart. Source: Crypto Ed/X
Considering the likelihood of further upward movement, Keith Alan, co-founder of the on-chain monitoring platform Material Indicators, cautioned that substantial resistance exists above in the form of various moving averages (MAs).
Material Indicators accurately predicted the recent upward movement, and Alan emphasized the importance of $24,750 as a support level.
“There is a significant amount of technical resistance overhead starting with the 21-Day MA, a #DeathCross between the 50-Day and 200-Day MAs, and ultimately, the 100-Day MA which aligns with the range high,” part of his latest commentary noted.
“$24,750 remains the crucial level to maintain to keep this rally alive. Pay attention to how PA interacts with those levels if/when they are approached.”
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BTC/USD 1-hour chart with 21, 50, 100, 200-day MAs. Source: TradingView
Alan further stated that the long-term outlook remains unchanged.
“Don’t anticipate a direct ascent to the top of the range,” he concluded.
“Clearing any one of these resistance levels requires some strength from bulls, and the herd must regroup and pause before they can pursue the next level.”
Research anticipates “true bottom” for crypto in late October
Looking ahead to the remainder of Q3, trading platform QCP Capital cautioned that Bitcoin and the broader crypto market could encounter significant selling pressure.
Related: Bitcoin UTXOs echoing March 2020 ‘black swan’ crash — New research
In addition to macroeconomic factors, such as the upcoming decision by the United States Federal Reserve regarding interest rates, industry-specific challenges are on the horizon.
In its latest market update, published on September 12, QCP highlighted “a concentration of upcoming bearish events that only turn neutral from mid-October onwards.”
“This includes a likely higher-than-expected CPI tomorrow and a more hawkish-than-expected FOMC next week, along with FTX token asset sales, and Mt. Gox over the next month to cap things off,” it stated.
“Thus, while our theory suggests a bottom early next month, we believe the true bottom will occur in mid to late October when the cycle of negative news has concluded.”
QCP also indicated that it anticipates a contrastingly “bullish” conclusion to the year and the beginning of 2024.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any decisions.
