Bitcoin registers the first positive weekly close after four weeks of downtrend in August, hinting at further bullish momentum.
Bitcoin’s 3-day chart shows a strong upside to $28,000 and eventually to $31,000 levels from here onwards.
The world’s largest cryptocurrency Bitcoin (BTC) gave a positive weekly closing for the first time in four weeks since August rising by more than 3% last week. As of press time, the BTC price is up by 2.28% trading at $27,193 with a market cap of $530 billion.
Bitcoin’s resilience in maintaining its price stability throughout September, historically a month marked by price dips, is noteworthy. This stability suggests that Bitcoin has solidified strong support at its current price level. This could further enable it to retain most of its earlier gains in the year.
The price movements of Bitcoin in 2023 have been significantly influenced by speculations regarding the potential approval of a Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). However, the absence of significant updates on this ETF in recent weeks might contribute to Bitcoin’s current stable pricing.
Santiment, a well-known crypto analytics firm, provides a positive outlook for Bitcoin. They point out that the supply of Tether’s USDT on crypto exchanges has surged to its highest level since March, reaching 24.1%. On the other hand, there are a large amount of Bitcoins moving off the exchanges recently. This could further serve as a catalyst for the BTC price going ahead.
By aligning these two notable trends – the increasing USDT supply on exchanges and the diminishing supplies of BTC – one can anticipate a potential surge in future market buying interest.
Bitcoin Price Can Surge to $31,000
Over the last 24 hours, Bitcoin has shown a strong upward trajectory indicating further momentum on the upside. As of press time, the Bitcoin price is trading above $27,400 levels. Popular crypto analyst Ali Martinez explains:
The 3-day Bitcoin chart is signaling a potential buy signal according to the TD Sequential indicator. If buying pressure for BTC strengthens, it could propel prices toward the midpoint or upper limit of the channel, potentially targeting $28,000 or even $31,000. However, it’s crucial to keep a close eye on the TD Risk Line at $24,500, as it represents a key point of invalidation.
As of now the immediate resistance to Bitcoin on the upside is $27,600. Beyond this, the BTC price can surge to $28,000 and further to $31,000 ahead.
Conversely, if Bitcoin fails to breach the $26,750 trendline, it could experience a retracement towards $26,600, or even revisit the $26,000 support zone. Such a correction might trigger heightened selling pressure, potentially pushing the price toward the vicinity of $25,250.
It’s worth highlighting that various technical indicators, including the 50-day exponential moving average and the relative strength index, are indicating the possibility of bullish momentum. Investors should maintain a close watch on the $26,500 level, as it could play a pivotal role in shaping Bitcoin’s near-term direction.
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