Bitcoin has been on a rollercoaster ride recently, with sudden price drops and spikes keeping investors on their toes. Last week, the cryptocurrency failed to break through its $27,500 resistance level and dropped to a low of $24,700.
However, Bitcoin has again shown signs of regaining its bullish momentum, with a 5% increase in the last 24 hours and trading at $26,400 at the time of writing.
Many analysts have predicted a continuation of the uptrend in Bitcoin’s price, which has been ongoing since January 2023.
Bearish Momentum Fades As Bitcoin Retests $26,500
According to Glassnode co-founder Yan Allemann, the current stage in this trend is the retesting of the $26,200 level as bearish momentum fades.
Allemann believes that this is an important stage, as it will determine whether Bitcoin can break through its previous resistance and move toward the next target of $27,200
However, while Bitcoin is showing signs of regaining its bullish momentum, it’s important to recognize that it is still fragile at this level. Therefore, building confidence among investors is crucial to sustaining Bitcoin’s upward trend.
On a positive note, BlackRock’s recent application with the Securities and Exchange Commission (SEC) for its new exchange-traded fund (ETF) has given Bitcoin holders and bulls hope.
As reported by NewsBTC, the recent announcement of BlackRock’s Bitcoin exchange-traded fund has the potential to impact BTC’s price significantly. If approved, this ETF would enable a wider range of investors to gain exposure to Bitcoin, which could drive up demand and ultimately increase its price.
ETFs provide a convenient way for institutional investors to access Bitcoin, creating a new demand avenue for the cryptocurrency. This could increase buying pressure and a potential surge in Bitcoin’s price.
Potential BTC Reversal From Support
Bitcoin has recently bounced from its bullish trend and the top of its range, indicating that it still has some work to do before establishing a sustainable upward trend.
According to market analyst Crypto Con, one of the most accurate indicators of Bitcoin’s bullish or bearish momentum is the 140-day moving average (MA), which shows that BTC’s price is below this crucial level.
The 140DMA is a widely followed indicator in the cryptocurrency market, as it clearly signals whether Bitcoin is in a bullish or bearish phase.
When BTC’s price is above the 140DMA, it’s a bullish signal, indicating that the cryptocurrency will likely continue its upward trend. Conversely, when the price is below the 140DMA, it’s a bearish signal, suggesting that the cryptocurrency will likely experience a downward trend.
Bitcoin’s price is below the 140DMA, indicating that it’s in a bearish phase. However, Crypto Con hopes the cryptocurrency will experience a huge reversal from this support level, leading to a bearish fakeout of the 140DMA. This strong bullish signal could indicate that Bitcoin is ready to continue its upward trend.
As BlackRock’s potential Bitcoin ETF gains attention and BTC gradually regains its bullish momentum, investors are increasingly optimistic that Bitcoin’s bottom is already behind. There is a growing belief that the largest cryptocurrency in the market is poised to reach new annual highs in 2023 and possibly even surpass its all-time high.
However, for BTC to continue its upward trend, the cryptocurrency needs to maintain its current level of $26,000 throughout the weekend. A sustained price above this price mark could indicate that BTC is on track for a green week in the coming days.
Featured image from iStock, chart from TradingView.com