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BTC price prediction: Bitcoin breaks resistance, becomes support. Buy?

Bitcoin's price pulls back from Monday's peak of $27,200, preparing for the next attempt to breach the $27k resistance.

by V. Sinclair
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Bitcoin’s bullish outlook strengthened on Monday as it surged past the $27,000 resistance level, only to encounter a sudden stop at the same level. This impressive climb had a positive impact on the sentiment of most cryptocurrencies. Ethereum, for instance, reclaimed the ground above $1,600 but faced resistance at $1,650.

Other top altcoins like XRP, Cardano, and Toncoin also performed well, posting gains of 3%, 2.5%, and 4.5% respectively. The total market capitalization increased by 1.4% to reach $1.1 trillion, indicating a resurgence of bullish activity.

Currently, Bitcoin’s price is trading at $26,830, slipping below the $27,000 support/resistance due to seller congestion at $27,200. The immediate downside support is provided by the confluence of the upper range channel boundary and the 200-day Exponential Moving Average (EMA) at $26,652. The sideways trend in the Moving Average Convergence Divergence (MACD) indicator suggests that bulls briefly had control but faltered in their search for higher support to gather more liquidity and build momentum for a significant breakout above $27,000.

Analysts and traders anticipate that bulls will conquer the $27,000 resistance, with a potential rally aiming for the $31,800 resistance. However, if the resistance remains stubborn, a rejection could lead to a revisit of the next major support area at $25,000. Holding firmly onto the immediate support at $26,652, which coincides with the range resistance, should be the bulls’ priority in the next sessions.

Bitcoin whales continue to accumulate, as addresses with 1-10k BTC account for 66% of the volume to exchange inflows. The increase in the Coinbase Premium Index indicates rising accumulation in the spot exchange. The open interest in the futures market, currently above $1 billion, confirms a positive funding rate and an optimistic sentiment among long traders.

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