Bitcoin faces ‘ton’ of resistance after daily BTC price gains pass 5%
Bitcoin (BTC) attempted to flip and hold $26,000 at the Sept. 12 Wall Street open as a swift BTC price rebound excited traders.
BTC price adds 5.5% in 24 hours
Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency holding the majority of its 24-hour gains, which at one point totaled 5.5%.
At the time of writing, $26,000 formed a focus, already flagged as an important line in the sand for Bitcoin bulls to reclaim.
“There we go, range lows reclaimed. Want to see another test of 27 now,” popular trader Jelle told X followers in one of several posts on Sept. 12.
Fellow trader Crypto Ed went further, hoping for a trip to $28,000 as the ultimate outcome on shorter timeframes, with another “sweep” of the range lows first.
Eyeing the odds of continued upside, however, Keith Alan, co-founder of on-chain monitoring resource Material Indicators, warned that significant resistance lay overhead in the form of various moving averages (MAs).
Material Indicators successfully forecast the latest upside, and Alan continued to underscore the significance of $24,750 holding as support.
“There is a ton 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 has confluence with the range high,” part of his latest commentary stated.
“$24,750 remains the critical level to hold to keep this rally alive. Focus on how PA interacts with those levels if/when they are approached.”
Alan added that the longer-term picture remained the same.
“Don’t expect a straight rip to the top of the range,” he concluded.
“Clearing any one of these resistance levels takes some strength from bulls and the herd has to regroup and graze a bit before they can go after the next level.”
Research predicts “true bottom” for crypto in late October
Casting a cursory look at the rest of Q3, meanwhile, trading platform QCP Capital warned that Bitcoin and crypto faced plenty of potential selling pressure.
Related: Bitcoin UTXOs echoing March 2020 ‘black swan’ crash — New research
In addition to macroeconomic triggers, such as the United States Federal Reserve’s upcoming decision on interest rates, industry-specific hurdles lay ahead.
In its latest market update, released on Sept. 12, QCP referenced “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, plus FTX token asset sales, and Mt. Gox over the next month to cap things off,” it wrote.
“Hence while our theory implies a bottom early next month, we think the true bottom will come in mid-late October when the bad news cycle has run its course.”
QCP added that it expected a conversely “bullish” end to the year and start of 2024.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
