Amidst mounting prospects of the Federal Reserve raising interest rates, Bitcoin and its crypto peers persist in their upward surge. BTC/USD defied expectations, breaching the pivotal 26,000 resistance after dipping to 24,901 earlier in the week. This remarkable climb occurred despite a Consumer Price Index (CPI) report that outperformed forecasts.
BTC has been steadily rising from its $25,000 support earlier this week, partly due to Franklin Templeton Investments' new Bitcoin ETF application. Although the ETF didn't push the price above the $26,541 resistance, it improved market conditions and increased investor confidence. Currently, BTC is trading above the $26,200 resistance, and a daily close above $26,500 could fuel further bullish momentum. BTC found strong support above $25,500, forming a base and recently breaking above the $26,000 resistance. While it briefly exceeded $26,500, it couldn't sustain that level and experienced a bearish reversal, trading below $26,500.
In the 4-hour time frame, Bitcoin is showing a more favorable outlook. It has been forming a significant falling wedge pattern, with the lower boundary coinciding with a strong support level at $25,000. Currently, the price is encountering resistance from the upper trendline, and it's also facing a challenge from the 4-hourly 200 EMA.
Additionally, there is a head and shoulders pattern in play, with the head at $28,143, which was the highest point reached on August 29th. As a result, it's likely that the BTC/USD pair will continue to trade within this range and possibly revisit the critical support level at $25,000. As both Bulls and Bears are in a tussle to take the lead.
According to Coingabbar Price Analysis, the market capitalization of BTC stands at $512,345,192,168. The 24-hour trading volume is approximately $7,507,891,629.
KEY LEVELS :
RESISTANCE LEVEL : $26,600-$27,000
SUPPORT LEVEL : $26,000-$25,600
Could the recent positive CPI data release have an impact on the Bitcoin and cryptocurrency markets? With Bitcoin showing confirmed bullish divergence, is this sufficient to offset a potentially bearish September and pave the way for a favorable October? Is Bitcoin presently navigating a situation of undervaluation or a potential crisis? Please share your views in the box below.
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.