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Bitcoin Profit-Taking At 2-Month High, Pullback Incoming?

On-chain data shows the Bitcoin profit-taking has risen to a two-month high, which could provide resistance to the BTC surge.

Bitcoin Profit-Taking Volume Has Shot Up With The Price Rise

According to data from the on-chain analytics firm Santiment, investors have started to take profits following the latest cryptocurrency price increase. The relevant indicator here is the “ratio of daily on-chain transaction volume in profit to loss,” as its name already implies, it tells us how the profit-taking volume in the market currently compares against the loss-taking one.

The indicator separates these two volumes by going through the on-chain history of each coin being sold/transferred on the network to see what price it was previously moved at.

If this last selling price for any coin was less than the current spot price, the sale of that particular coin contributes to the profit-taking volume. Similarly, their transactions would count under the loss-taking volume for the opposite type of coins.

When the indicator has a value greater than zero, the profit-taking volume is currently overwhelming the loss-taking volume. On the other hand, values under this mark suggest that loss-taking is currently the dominant behavior among investors.

Now, here is a chart that shows how the value of this Bitcoin indicator has changed over the past month:

As displayed in the above graph, the indicator’s value has risen as Bitcoin’s rebound from the $25,000 level occurred during the past few days. This suggests that the investors have started increasing their profit-taking volume.

During the past day or so, the metric has seen exceptionally high values, as the difference between the profit-taking and loss-taking volumes is at a two-month high now.

Usually, profit-taking is a normal sign during price rallies. Still, considering that this latest increase in BTC’s value isn’t too extraordinary, the level of the profit selling may be a cause for concern.

Perhaps some of the holders selling here have lost hope for the asset after it has been stuck in consolidation for some time now. These investors might be jumping on this relatively minor exit opportunity because they don’t think a better one will emerge shortly.

In the chart, Santiment has also attached the data for another metric: the active addresses. This indicator keeps track of the total number of addresses taking part in some transfer activity on the blockchain daily.

It’s visible that this metric has been at notably high values in the past few days, suggesting that many traders have been paying attention to the cryptocurrency.

While sellers may be present in the market, the high activity could also suggest the presence of buyers. It remains to be seen whether the profit-takers would pull the asset back down, or if the buyers are strong enough to hold them off.

BTC Price

Bitcoin had climbed to the $26,700 mark yesterday but dropped back under $26,500 today.

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Blockchain

Bitcoin Forecast: Analyst Who Predicted 2022 Bottom Unveils New Long Positions For BTC

In a recent YouTube interview with TechnicalRoundup, crypto Analyst DonAlt revealed he had purchased Bitcoin after the asset fell below the $25,000 level. According to the analyst also predicted the crypto market bottom in 2022, he had two choices before opening the new BTC position

DonAlt Shares Insights On Bitcoin’s Next Price Moves

Explaining the reasoning behind his decision to purchase Bitcoin, DonAlt told TechnicalRoundup:

We’re at the point where you could make an argument for buying here [around $26,000]. And if you’re wrong, you get stopped out, and you get to buy at $19,000. The problem with kind of not doing anything, and the reason why I took a trade – I bought like a little bit, not too much, but a little bit of Bitcoin – is, basically, because I’m just guessing that I will not get an entry otherwise.

Furthermore, DonAlt stated that if his prediction is correct, he will exit the trade after attaining a profit level of double-digit percentage points. According to him, his profit target is $30,000, but with a neutral sentiment on the trade. 

“I’m not too bullish. I’m not too bearish. The reason why I kind of think this is an interesting trade in general is, basically, because I think if this fails… if you break down here [below $24,900]. I think we’re going to start capitulating. And then we’re going to start capitulating proper. And we’re going to go to $20,000. So, you basically have an invalidation around $25,000 right now,” he added.

Meanwhile, bitcoin trades at $26,638 today, September 15, above the $24,900 capitulation zone. And according to another crypto analyst, Ali Charts, the TD sequential indicator has displayed a buy signal for BTC on the weekly chart.

However, he believes that for this sentiment to be confirmed, BTC must close this week above $25,600. If this happens, BTC could rally to $28,350 or up to $31,800. 

Crypto analyst Titan of Crypto, with over 44,000 Twitter followers, also chimed in on the asset, saying that past performance does not guarantee future results. However, he believes comparing the present price action to previous ones is important.

He said that if BTC follows its past price action and there is no negative event before its halving, it can attain $37,500 before a pullback. 

Will Bitcoin Hit The $30,000 Mark?

Bitcoin has entered an accumulation phase after breaking above the 38.2% Fibonacci Level ($26,406). The buyers control the market, as evidenced by the four consecutive green candles on the daily chart. 

However, it faces resistance at the 50% Fib level ($26,738). If the buyers continue to mount pressure, BTC will rise to the 61.8% Fib level ($27,069). 

Also, the Relative Strength Index (RSI) indicator displays a value of 52.11 and is rising from the neutral zone into the buy zone as more traders enter long positions. Furthermore, the Moving Average Convergence/Divergence (MACD) is above its signal liner and displays a strong buy signal. 

The green Histogram bars confirm that BTC is in a positive price trend. BTC will likely continue its rally in the coming weeks if the buyers sustain their pressure and break above the $26,738 resistance level. Although if traders begin to take profit, then a brief retracement will likely occur before a continuation of the uptrend. 

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Blockchain

New Reports Shows How Much Capital Was Pulled Out Of Crypto In August

The crypto industry is known for its sheer price movement volatility, driven mainly by events and liquidity crunches. Since the beginning of the year, there has been a noticeable and consistent outflow of cash from the cryptocurrency market, which is unsurprising. 

According to Bitfinex’s latest report, this capital drain was evident in August, as the crypto market saw an exit of about $55 billion in capital from major cryptocurrencies.

$55 Billion Drained In The Past Month

Bitfinex’s analysis, which measured the aggregate realized value metric of Bitcoin (BTC), Ethereum (ETH), and major stablecoins like Tether’s USDT, USD Coin (USDC), BUSD, Dai, and TrueUSD (TUSD), indicates that about $55 billion in capital exited the market in August.

Although the market struggled for most of the first half of the year, things became different in July as Bitcoin spearheaded inflows. During this period, Bitcoin crossed $30,000 for a while as over $100 billion has entered the market. However, the momentum changed in early August, as profit-taking and continued mixed signals from the US economy triggered outflows. 

“A deep dive into the data reveals a prevailing trend: by early August, the industry had begun to experience capital outflows,” said the report.

Interest from institutional investors during this period, especially, started to wane as digital asset investment funds registered outflows after four weeks of heavy inflows. The trend has continued to the time of writing, as the run of outflows now totals $294 million. 

What Caused The Crypto Capital Drain?

The report from Bitfinex shows that August’s capital drain was the biggest this year, especially for Bitcoin. Most of this drain came from two isolated events, resulting in immense price movement in a relatively short period. In particular, the August 17 flash crash saw Bitcoin’s price drop by 11.4% in a few hours. 

“August was the largest red monthly candle for BTC since the bear market bottom was formed in November 2022 at –11.29 percent as per Bitfinex Data.”

The crypto derivative market has also had a similar trajectory. Ether (ETH) futures and options markets have slowed considerably in 2023. The average daily trading volume is down almost 50% from the two-year average to $14.3 billion daily. 

Bitcoin has also seen some liquidity crunches, as data shows almost 69% of all mined Bitcoin have not moved in over a year. On the other hand, this suggests a high conviction from investors and a buoyant outlook on the future of the digital currency. 

September has been relatively quiet regarding price movement, and the industry awaits the beginning of the next bull market. However, this crypto exchange founder believes that a bull run already started in March but the market is yet to catch on.

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Blockchain

Cardano Analysis: How Much Energy Do ADA Bulls Have To Hit $0.3 Milestone?

Cardano (ADA) has been making waves recently, pulled up by a newly found enthusiastic demand pressure at the $0.24 support level. Investors and enthusiasts are eagerly watching to see if this bullish trajectory is solid enough to inspire confidence in a more extended recovery.

After a period of uncertainty, ADA’s price has seen a resurgence, thanks in part to the $0.24 support level. This renewed demand has ignited a relief rally, catching the attention of traders and analysts alike. But, the question on everyone’s mind is whether this upward momentum can be sustained.

According to a recent price analysis, if the current buying momentum persists, ADA could appreciate by another 3% within the week. This modest yet encouraging gain hints at the cryptocurrency’s resilience. However, there’s a significant obstacle standing in the way of a more substantial bullish turn.

As of the latest available data, ADA is priced at approximately $0.254026 on CoinGecko, with a 2.6% gain in the last 24 hours and a slight 1.3% decline over the past seven days.

ADA Breaks Through The Dynamic Resistance

A formidable dynamic resistance level has thwarted bulls’ attempts to push ADA higher on three distinct occasions in the past. To inspire true confidence in a prolonged uptrend, ADA’s price must decisively breach this overhead resistance.

Analysts suggest that achieving this feat could have a cascading effect, repositioning the resistance as newfound support. If this occurs, it could propel ADA’s price by an impressive 12.3%, pushing it to the $0.28 mark, with the possibility of reaching $0.30 in the near future.

However, not all analyses are equally optimistic. A separate assessment notes a lack of bullish signals in the short term. ADA’s price has been largely stagnant, fluctuating within the $0.25-$0.29 range. This has led to concerns about the cryptocurrency’s immediate prospects.

Cardano: Challenges In The Midterm

Looking further ahead, the midterm outlook for ADA remains uncertain. The resistance levels set by Bitcoin are acting as a formidable barrier in the cryptocurrency market, making ADA a less favorable candidate for a bullish breakout.

While there are positive signs of potential gains in the short term, the cryptocurrency faces significant challenges, particularly in breaking through dynamic resistance levels and overcoming the shadow of Bitcoin’s dominance.

Investors and enthusiasts will be closely monitoring ADA’s performance in the coming weeks to see if it can sustain its recovery and inspire confidence in a more extended bullish trend.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

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Blockchain

Ethereum Core Devs Greenlight EIP-7514: Implications For ETH Price

Ethereum Core Developers have officially approved EIP-7514 for inclusion in the upcoming Dencun upgrade which is slated for late 2023. This Ethereum Improvement Proposal (EIP) primarily aims to decelerate the growth rate of ETH staking, thereby providing the Ethereum community additional time to craft an improved validator reward scheme.

The main modification brought by this EIP is setting the Max Epoch Churn Limit, the validator activation queue upper limit, to a constant value of 8. Previously, the churn limit was calculated by taking “The total number of validators/65536,” which at present equates to about 12/epoch.

The decision followed an Ethereum Core Dev Meeting, as described in a tweet by Tim Beiko: “Wrapped up another Ethereum #AllCoreDevs: we covered devnet updates, additions to Dencun, and had a full overview of Reth. […] EIP-7514 will be part of the Dencun upgrade! Expect the EIP and associated CL specs PR to be updated to reflect all of this in the coming days.”

Beiko’s statement underscored the importance of this change and provided insights into the consensus among Core Developer teams. Dankrad Feist, a Researcher at the Ethereum Foundation, outlined the importance of the approval. Feist stated:

My reasoning on why I’m for EIP-7514. It is currently unclear if (especially liquid) staking will keep growing indefinitely. In the case that the withdrawal queue does not empty over the next few months, the lower churn limit will give the Ethereum community the time needed to research, debate and implement solutions.

Implications For Ethereum Price

The staking ratio’s continual rise could result in a diminishing amount of liquid ETH available for trading. Should the staking ratio near 100%, it might produce a supply scarcity, thereby influencing the ETH price positively. However, from the information presented, Ethereum developers are not advocating for this scenario due to potential technical and security implications.

EIP-7514, therefore, indirectly impacts the ETH price by manipulating its supply side, though immediate, direct effects on the price aren’t anticipated. Instead, any potential influence on price would likely manifest over an extended period.

The motivation behind EIP-7514, as detailed on GitHub, is to “mitigate the negative externalities of very high level of total ETH supply staked before a proper solution is implemented.” If the deposit queue stays 100% full, the share of ETH supply staked will reach 50% by May 2024, 75% by September 2024, and 100% by December 2024.

Remarkably, the modest returns don’t necessarily deter further capital staking, especially with the frequently substantial and erratic returns from MEV. Therefore, EIP-7514 serves as an interim measure, buying time for the community to deliberate and develop comprehensive solutions to the emerging challenges.

In summary, while the immediate effects of EIP-7514 on the ETH price remain to be seen, its long-term implications, especially in terms of staking growth and supply side management, could be substantial. The community and investors alike will closely monitor the aftermath of this EIP’s implementation in the Dencun upgrade.

ETH Price Builds Momentum

At press time, ETH was trading at $1,628. On Monday, ETH price bounced off the 78.6% Fibonacci retracement level at $1,536. A breakout above the 20-day EMA at $1,639 and consequently above the 61.8% Fibonacci level at $1,665 is critical to maintain upside momentum.

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Blockchain

Is Bitcoin Forming A Double Bottom? Here’s What Needs To Happen

In recent days, Bitcoin has shown signs of a potential reversal, with the cryptocurrency charting three consecutive green daily candles. The last time such a pattern was observed was early July and between mid and late June, when Bitcoin rallied from just under $25,000 to over $31,000. This shift in price dynamics has led to a change in market sentiment, with the bearish outlook slowly giving way to a more bullish perspective.

While Bitcoin has successfully averted the confirmation of a double top on the 1-week chart fo the moment, this price action has fueled discussions among analysts about the possibility of Bitcoin forming a double bottom pattern, a significant technical indicator.

Bitcoin Double Bottom In The Making?

A double bottom is a classic technical analysis pattern that signifies a potential trend reversal from bearish to bullish in markets. It is characterized by two distinct troughs or lows in the price chart, separated by a peak or a minor high in between. The pattern resembles the letter “W,” with the first trough indicating a significant low, followed by a temporary rebound, and then a second trough, usually near the same price level as the first. A valid double bottom is confirmed when the price breaks above the peak or resistance level between the two troughs, signaling a potential upward trend reversal.

Rekt Capital, a renowned crypto analyst, recently shared his insights suggesting that Bitcoin’s current price pattern in the weekly chart resembles a double top, which typically indicates a bearish reversal. This pattern is characterized by an ‘M’ shape. However, for this to be confirmed, the price would need to break down from the $26,000 support. At press time, Bitcoin was trading at $26,618, successfully fending off the double top validation at the moment.

On the flip side, a double bottom, which forms a ‘W’ shape, would require Bitcoin to rebound from the $26,000 mark and tweeted today, “Could this BTC Double Top actually be a Double Bottom? And the simple answer is – technically, yes. […] But for BTC to form a Double Bottom, it would need to rebound from $26k and rally to $30.6k (which is its validation point).”

He further highlighted the challenges Bitcoin faces, noting the uncertainty surrounding the $26k support level and the numerous confluent resistances ahead, which might hinder the completion of the double bottom formation. Rekt Capital  elaborated on the significance of the $26,000 level, tweeting, “It looks like BTC may be choosing the ‘relief rally’ route first in an effort to potentially turn old support into new resistance. The black Monthly level (~$27,200) is approximately confluent with the Bull Market support band as well.”

He also pointed to Bitcoin’s recent bearish monthly candle close for August, emphasizing that Bitcoin closed below approximately $27,150, thereby confirming it as a lost support. Therefore he warns that the current price move by Bitcoin could only be a relief rally to confirm $27,150 as new resistance before dropping into the $23,000 region.

“It’s possible BTC could rebound into ~$27,150, maybe even upside wick beyond it this September. […] $23,000 is the next major Monthly support now that ~$27150 has been lost,” he remarked.

More Resistance Levels For BTC Price

So it’s clear that BTC has a major resistance level of $27,150 to break before the bulls can even dream of confirming a double bottom pattern. But there are also other key resistances to overcome before $30,600 can be breached and the double bottom confirmed.

On-chain analysis firm CryptoQuant emphasized the role of short-term Bitcoin holders, who often provide the liquidity for significant price movements. According to their data, the break-even price for these holders lies between $27,500 and $29,000. If Bitcoin remains below these levels for an extended period, these holders might be incentivized to sell, potentially exerting downward pressure on the price:

The more time we spend below these price levels, the more incentive there will be to exit liquidity from the market, and the basis condition for the return of the upward trend of Bitcoin depends on the price jump above the short-term realized prices.

On the 4-hour time frame, BTC needs to overcome three major resistances: $26,857 (38.2% Fibonacci retracement level), $27,365 (23.6% Fibonacci retracement level) and $28,186 (post-Grayscale high from August 29th).

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Blockchain

Algorand (ALGO) May Have A Chance At A Bullish Streak – Here’s How

Algorand (ALGO) has recently announced significant changes to its protocol that are set to reshape the future of the blockchain network. These developments are aimed at increasing decentralization and fostering consensus among participants, signaling a bold step forward for the project.

One of the most striking revelations in Algorand’s recent announcement is the network’s transition from relays to a peer-to-peer (P2P) network approach. This fundamental shift represents a departure from traditional blockchain architectures and underscores Algorand’s commitment to further decentralization. 

By adopting a P2P network, Algorand aims to empower its community, enabling more nodes to participate directly in the network’s operations. This move aligns with the broader industry trend of reducing reliance on intermediaries, ultimately enhancing the network’s security and resilience.

Algorand: Incentivizing Consensus For Greater Decentralization

Another pivotal aspect of Algorand’s plan is the introduction of incentives to drive consensus within the network. By incentivizing participants, Algorand seeks to strengthen its decentralized nature and encourage active involvement in the consensus process. 

The @Algorand protocol is evolving to a peer-to-peer gossip network not requiring relays, while maintaining finality and blocktime, and introducing consensus incentivization, a game-changer toward true decentralization. pic.twitter.com/pHZmduYLn5

— Algorand Foundation (@AlgoFoundation) September 13, 2023

This approach not only enhances security but also promotes a more democratic and inclusive blockchain ecosystem. As the network evolves, these incentives are expected to attract a diverse array of stakeholders, fostering a sense of shared ownership and responsibility.

The implications of these transformative changes are already resonating throughout the ALGO community and the broader cryptocurrency market. Despite ALGO’s recent price struggles, which currently hover at $0.094271 according to CoinGecko, there are signs of potential bullish momentum. The Relative Strength Index (RSI) has been steadily climbing out of the oversold zone, hinting at a possible reversal of fortune.

Moreover, ALGO has recently experienced its highest social dominance in the past 24 hours. This uptick in social visibility can be attributed to Algorand’s groundbreaking announcement, which has sparked conversations and enthusiasm among cryptocurrency enthusiasts and investors alike. 

Asia Broadband Inc. Joins Algorand Ecosystem

In a piece of welcome news, Asia Broadband Inc. has announced its intention to migrate its AABBG Token, a gold-backed cryptocurrency, from the Ethereum blockchain to Algorand. This migration, set to occur on October 1, is expected to provide token holders with improved transaction efficiency, reduced costs, and enhanced transparency.

This decision underscores the growing trust in Algorand’s capabilities as a blockchain platform capable of supporting innovative projects.

Algorand’s shift towards a peer-to-peer network and the introduction of incentivized consensus represents a pivotal moment in the project’s journey towards greater decentralization and community involvement. 

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from CryptoTvplus

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Blockchain

XRP Price Prediction – Key Reasons Why Bulls Could Aim Rally To $0.60

Ripple’s token price is recovering higher from $0.458 against the US Dollar. XRP price could start a fresh rally if it clears the $0.505 and $0.515 resistance levels.

Ripple’s token price is attempting a move above $0.510 and $0.525 against the US dollar.
The price is now trading below $0.505 and the 100 simple moving average (4 hours).
There was a break above a major bearish trend line with resistance near $0.4840 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair might gain bullish momentum if there is a close above $0.515.

Ripple’s Token Price Eyes Bullish Break

After another drop, Ripple’s XRP found support near the $0.458 zone against the US Dollar. The price traded as low as $0.4589 and recently started a fresh increase, like Bitcoin and Ethereum.

There was a move above the $0.480 resistance. XRP climbed above the 23.6% Fib retracement level of the downward move from the $0.5490 swing high to the $0.4589 low. Besides, there was a break above a major bearish trend line with resistance near $0.4840 on the 4-hour chart of the XRP/USD pair.

The price is now trading below $0.505 and the 100 simple moving average (4 hours). It seems to be facing resistance near the $0.505 zone.

Source: XRPUSD on TradingView.com

The next major resistance is near the $0.5145 level or the 61.8% Fib retracement level of the downward move from the $0.5490 swing high to the $0.4589 low. The main resistance is forming near $0.525. A successful break above the $0.525 resistance level might start a strong rally toward the $0.570 resistance. Any more gains might call for a test of the $0.600 resistance.

Another Rejection in XRP?

If ripple fails to clear the $0.5145 resistance zone, it could start another decline. Initial support on the downside is near the $0.484 zone.

The next major support is at $0.458. If there is a downside break and a close below the $0.458 level, XRP’s price could extend losses. In the stated case, the price could retest the $0.432 support zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $0.484, $0.458, and $0.432.

Major Resistance Levels – $0.505, $0.515, and $0.525.

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Blockchain

Ethereum Price Nears Make-or-Break Resistance, Can Bulls Make It?

Ethereum price is eyeing a key upside break above $1,650 against the US Dollar. ETH could gain bullish momentum if there is a close above $1,650 and $1,670.

Ethereum is moving higher toward the $1,650 resistance.
The price is trading above $1,610 and the 100-hourly Simple Moving Average.
There is a short-term rising channel forming with support near $1,630 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rise steadily if there is a close above $1,650 and $1,670.

Ethereum Price Eyes Upside Break

Ethereum’s price formed a base above the $1,580 level and extended its increase. ETH traded above the $1,620 resistance to move into a positive zone, like Bitcoin.

The price is now trading near a key barrier at $1,650, above which it could accelerate higher. Ether is now trading above $1,610 and the 100-hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the recent increase from the $1,582 swing low to the $1,644 high.

Besides, there is a short-term rising channel forming with support near $1,630 on the hourly chart of ETH/USD. On the upside, the price might face resistance near the $1,645 level. The next resistance is near the $1,650 level. A close above the $1,650 resistance might push the price toward the $1,670 resistance.

Source: ETHUSD on TradingView.com

To start a steady increase, the price must settle above the $1,670 resistance. The next major hurdle is near the $1,750 level. A close above the $1,750 level might send Ethereum further higher toward $1,880.

Another Rejection in ETH?

If Ethereum fails to clear the $1,650 resistance, it could start another decline. Initial support on the downside is near the $1,630 level and the channel trend line.

The first key support is close to $1,610, the 100-hourly Simple Moving Average, and the 50% Fib retracement level of the recent increase from the $1,582 swing low to the $1,644 high. The next key support is $1,580. A downside break below $1,580 might start another bearish wave. In the stated case, the price could even decline toward the $1,520 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,610

Major Resistance Level – $1,650

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Blockchain

Bitcoin Bulls Keep Pushing And Its Good Signs of A Fresh Rally

Bitcoin price is holding gains above the $26,200 zone. BTC seems to be forming a base for a fresh increase above $26,850 in the coming sessions.

Bitcoin is eyeing a key upside break above the $26,850 level.
The price is trading above $26,100 and the 100 hourly Simple moving average.
There is a key bullish trend line forming with support near $26,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair seems to be setting up for a fresh rally above the $26,850 resistance.

Bitcoin Price Could Rally Above $27K

Bitcoin price started a decent increase above the $26,000 resistance zone. BTC remained well-bid above the Fib retracement level of the upward move from the $24,925 swing low to the $27,212 high.

There was a close above the $26,500 resistance zone. However, the bears seem to be protecting an upside break above the $26,850 resistance. The recent high was formed near $26,833 before there was another downside correction.

There was a move toward the 50% Fib retracement level of the recent increase from the $26,154 swing low to the $26,833 high. Bitcoin is now trading above $26,100 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $26,300 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $26,720 level. The first major resistance is near the $26,850 level. The next key resistance could be near the $27,200 level.

Source: BTCUSD on TradingView.com

A successful move above the $26,850 resistance and then a close above $27,200 could spark another bullish wave. The next major resistance is near $28,000, above which the bulls could gain strength. In the stated case, the price could test the $28,800 level.

Another Rejection In BTC?

If Bitcoin fails to start a fresh increase above the $26,850 resistance, it could continue to move down. Immediate support on the downside is near the $26,300 level and the trend line.

The trend line is near the 76.4% Fib retracement level of the recent increase from the $26,154 swing low to the $26,833 high. The next major support is near the $26,000 level. A downside break and close below the $26,000 level might send the price toward the key support at $25,550.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $26,300, followed by $26,000.

Major Resistance Levels – $26,720, $26,850, and $27,200.

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