The post Bitcoin Continues Its Rally Above $26.5K- Will BTC Price Be Able To Break This Resistance? appeared first on Coinpedia Fintech News
In the highly volatile crypto market, Bitcoin, the digital gold standard, has once again proven its resilience. Following a brief dip below the $25,000 mark, spurred by the Federal Reserve’s decision to pause interest rate hikes, Bitcoin has rebounded with a vengeance. This temporary setback provided a golden opportunity for retail investors to accumulate Bitcoin at a discounted price. Now, the cryptocurrency giant has surged past the $26,500 threshold, sparking renewed optimism among investors and traders.
Is Bitcoin Escaping The Bearish Territory?
Following a tumultuous week influenced by macroeconomic factors, Bitcoin is hovering around the familiar trend lines near the $26,000 mark – the question now is, what’s next?
Despite the intense volatility that tested the mettle of traders over the past week, Bitcoin’s price remains steadfast, clinging to its well-known territory.
As we kick off a new week of trading, the crypto market, particularly Bitcoin, finds itself in a state of suspense. Market players are adopting a “wait and see” approach due to the current ambiguity surrounding the direction of the world’s largest cryptocurrency.
Even though Bitcoin has been relatively stable in recent days, its dominance has surged to over 49.8% on trading, a level not seen in more than two years.
The recent surge in Bitcoin’s value can be partially attributed to the weakening of the US dollar. The dollar index, which measures the value of the greenback against a basket of major currencies, experienced a 1.2% drop to 102.30 last week, marking its third consecutive weekly loss.
Crypto intelligence firm Jarvis Labs said,
“Any decline in the dollar is good for bitcoin (and vice versa). That’s why BTC and risk assets have had their strongest bull runs during DXY bear markets.”
Will BTC Price Struggle Near This Level?
Bitcoin experienced a sharp increase, catching off guard the aggressive bears who might have shorted when it dipped below $26,250. However, bears are not leaving any chance to slow down the current recovery rally as BTC price slightly declines to $26.4K level.
While the bears are attempting to cap the recovery rally at the 200-day EMA, a promising sign is that the bulls have not conceded much territory. This indicates that investors are maintaining their positions, anticipating a further upward movement in Bitcoin’s price.
As of writing, BTC price trades at $26,411, declining over 0.5% in the last 24 hours.
The 4-hour chart shows the 20-EMA rising and the RSI in the positive zone, indicating short-term bullish control. Minor resistance lies at $26,844, but if surpassed, Bitcoin could reach the channel’s resistance line near $27,428. If this level is breached, a rally to $28,318 could follow.
This bullish outlook will be invalidated if the price drops below the 20-EMA, potentially pulling the price down to the 50-SMA and then to the strong support zone between $25,350 and $24,700. A break below this zone could trigger intensified selling.