The recent rise of Bitcoin towards the significant resistance level of $27,000 has encountered a stumbling block, as the digital asset grapples with breaking this crucial mark. Speculations about selling pressure are on the rise due to the emergence of an inverted hammer candlestick pattern in the latest price movements. This could potentially create a profitable sell trade opportunity for investors if Bitcoin fails to surpass the $27,000 threshold.
At present, Bitcoin’s price stands at $26,813, witnessing a volume of $15.5 billion in the past 24 hours. With a positive growth of approximately 1.50% in the same period, its market cap remains a solid $520 billion. As of now, there are 19,407,475 BTC coins in circulation, out of a maximum supply of 21,000,000.
A closer examination of Bitcoin’s technical analysis reveals its struggle with the $27,000 resistance level. A downward trend line originating from the recent peak on May 29 and reconnecting with the price action on June 20, indicates the difficulty in breaking above this trend line. The formation of an inverted hammer candlestick subsequently suggests a weakening of bullish momentum.
The existence of consecutive uncertain candles implies a transition in control from buyers to sellers. Bitcoin’s key support level hovers around $26,275, with the possibility of a breakdown below this level exposing the digital currency to the next support at $25,590. Further downside movement could lead to an additional support level at $24,860.
Despite these bearish indicators, the relative strength index (RSI) and moving average convergence divergence (MACD) signals still point towards a buyer’s market sentiment. Moreover, the 50-day exponential moving average offers potential support for approximately $26,250.
Bitcoin’s upcoming price movements will hinge on whether it can successfully break out of the trading range between $26,250 and $27,000. A triumphant leap above $27,000 may result in further resistance levels at $27,600, $28,000, or even $28,450.
To sum up, keen observation of the $27,000 level is vital, as it serves as a pivot point for Bitcoin, potentially determining its future trajectory.
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Source: Cryptonews
