Bitcoin (BTC), symbolized as $26,192, made an attempt to assert dominance over the $26,000 mark when the Wall Street gates opened on September 12. This swift resurgence in BTC's value stirred excitement among traders.
The price of BTC increased by 5.5% within a 24-hour period
Over the course of 24 hours, BTC managed to tack on a 5.5% increase in its price, as per TradingView data. Remarkably, it clung onto most of the gains it had accrued during that time, reaching a cumulative rise of 5.5%.
At the time of this composition, the $26,000 level emerged as a critical focal point, already recognized as a significant milestone for Bitcoin enthusiasts aiming for a resurgence.
Renowned trader Jelle voiced his sentiments, saying, "There we go, we've reclaimed the lower end of the trading range. Now, I'm eager to witness another test of $27," in one of his numerous posts on September 12.
Another trader, Crypto Ed, ventured even further, expressing hopes for BTC to embark on a journey to $28,000, particularly on shorter timeframes, with an initial "sweep" of the lower range boundaries.
Nonetheless, when it comes to assessing the likelihood of sustained upward momentum, Keith Alan, co-founder of the on-chain monitoring resource Material Indicators, issued a warning regarding substantial resistance looming in the horizon, in the form of various moving averages (MAs).
Material Indicators had successfully predicted the recent upswing, and Alan reiterated the critical importance of $24,750 serving as a firm support level.
Alan elaborated on this by saying, "There exists a significant technical resistance barrier ahead, commencing with the 21-Day MA, followed by a #DeathCross between the 50-Day and 200-Day MAs, and ultimately, the 100-Day MA, which coincides with the upper limit of the trading range," as stated in a segment of his latest commentary.
"$24,750 remains the pivotal level that must be defended to sustain the current rally. Pay close attention to how the price action behaves when it nears these levels."
Alan further emphasized that the broader, long-term outlook has not undergone any fundamental changes, concluding, "Don't anticipate a straight upward surge to the upper boundary of the range. Overcoming each of these resistance levels will require considerable strength from the bulls, and the herd will need to regroup and graze before tackling the next level."
Research anticipates that the cryptocurrency market will reach its "genuine low point" around late October
In the realm of cryptocurrency predictions, research points to a potential "true bottom" arriving in late October. Offering a quick overview of the remainder of the third quarter, QCP Capital, a trading platform, cautioned that both Bitcoin and the broader crypto market could face substantial selling pressure.
In addition to macroeconomic factors, such as the United States Federal Reserve's impending interest rate decision, there are industry-specific challenges on the horizon.
In their latest market update released on September 12, QCP Capital made reference to "a concentration of impending bearish events that are expected to transition into a neutral stance only by mid-October."
These events include the likelihood of higher-than-anticipated CPI figures, a more hawkish FOMC meeting in the coming week, FTX token asset sales, and the culmination of Mt. Gox-related developments over the next month.
As a result, while their theory suggests a potential bottom forming early next month, they anticipate that the actual market low point will likely materialize in mid to late October, once the cycle of adverse news has run its course.
Furthermore, QCP expressed optimism for a contrasting "bullish" conclusion to the year and the start of 2024.