BITCOIN PRICE ANALYSIS CMP-$26,300: Is the Rally Running Out of Steam?

Key Takeaways
  • The daily Bitcoin chart reveals the emergence of a Double-Top pattern around the $26,500 mark
  • Furthermore, a head and shoulders pattern is also visible on the BTC chart
  • Bitcoin is trading close to the upper boundary of a falling wedge pattern on the 4-hour chart
14-09-2023 By: Lokesh Gupta
BITCOIN PRICE ANALYSIS CMP-$26,300: Is the Rally Running Out of Steam?

Cryptocurrencies rose despite increasing Fed rate hike risks

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.

On The Daily Chart:

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.

On The 4-Hour Chart:

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.

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