Bitcoin recently experienced an impressive 7% rally, bouncing back from a low of $25,420 to $26,800, as concerns regarding the SEC’s regulatory actions seemed to ease. This upswing has left many investors wondering if now is the right time to invest in Bitcoin. The cryptocurrency’s price has since continued to climb, currently sitting at $26,920.
Despite the legal issues major platforms like Binance and Coinbase have faced, including lawsuits from the SEC over alleged securities law violations, the cryptocurrency market has demonstrated considerable resilience. In particular, cryptocurrencies like Bitcoin and Ethereum have made impressive recoveries in the face of these challenges. The global cryptocurrency market capitalization now sits at an impressive $1.17 trillion, showcasing a boost of over 3%.
Even while the SEC took action against Coinbase and Binance, the crypto fear and greed index showed a marked recovery. This component has a 9-point increase compared to the previous day, indicating a return to the neutral zone and suggesting that the industry is capable of overcoming obstacles and navigating challenges.
Interestingly, during the latest market comeback, short positions liquidated on trading platforms like Binance created even further upward momentum for the Bitcoin price. This occurred as traders were forced to sell their Bitcoin at higher prices due to their short positions being closed. A trigger for this growth seems to be the increased interest in buying cryptocurrencies at lower prices, as noted by market data provider Santiment.
However, Bitcoin currently faces resistance around the $27,350 mark, and the formation of a bearish engulfing candle at that level could suggest selling pressure and potential dominance by sellers. On the other hand, other technical indicators and moving averages remain bullish, which could indicate that the buying pressure has not yet subsided.
For Bitcoin to maintain its upward momentum, it is crucial that it breaks through the resistance level of $27,350. If the price moves downward, immediate support is expected at around $26,600, coinciding with the 50-day exponential moving average. If that support level is breached, a potential decline to $26,175, followed by a further drop to $25,400, may occur.
On the other side of the spectrum, if Bitcoin successfully surpasses the $27,350 resistance, a new target of $28,000 and then $28,400 may be expected. It’s essential for traders to pay close attention to price action near the $27,350 pivot point, as it may prove to be a market turning point.
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Source: Cryptonews
