Bitcoin (BTC) appears ready for a lift off rally and this could trigger a 20% increase in the price. After forming a double bottom candlestick pattern in the daily chart on Sept. 11, Bitcoin ended the week in the green for the first time in five weeks. This is a positive sign that the battle between the buyers and the sellers is tilting in favor of the upside.
It is expected that the Federal Open Market Committee (FOMC) meeting scheduled for September 20 could increase volatility. Market participants expect the U.S. central bank to maintain its status quo on rates, but the real issues could emerge from Fed Chair Jerome Powell’s remarks after the FOMC decision.
BTC’s recovery from the strong support near $25,000 has re-fueled buyer interest in the pioneer cryptocurrency, as it provides trading opportunities. For the big crypto to secure the uptrend, bulls must aggressively defend the support level at $26,500.
Bitcoin Price Looks Ready To Retest $31,800
Bitcoin dropped to the $24,954 level on Sept. 11, leading to the formation of a double bottom pattern in this region. Note that when the price reached this level earlier in mid-June, it embarked on a recovery that saw BTC rally 27.7% to the 2023 high at $31,875.
After revisiting the said level, Bitcoin embarked on a recovery on Sept. 12, indicating buyer congestion around $25,000. Since then, the bulls have remained resilient, pulling the price past $26,500. Several attempts by the bears to yank the price back below this level have been thwarted by the bulls who have pushed it higher.
At the time of writing, BTC was trading in the green at $26,698, up 0.5% over the last 24 hours. While this is a small change in the price, its trading volume has increased by 14% over the same timeframe, suggesting increasing investor interest in the king crypto.
As such, increased buying from the current price could see Bitcoin rise to confront resistance from the 50-day Simple Moving Average (SMA) at $27,416, the 200-day SMA at $27,838, and the 100-day SMA at $28,445.
Above that, the next significant hurdle is posed by the $30,000 psychological level. Shattering this level would see the bellwether crypto rise to revisit the year-to-date (YTD) high at $31,875. This would represent a 19.38% increase from the current price.
BTC/USD daily Chart
This positive outlook was supported by the upward movement of the Moving Average Convergence Divergence (MACD) indicator. The RSI was also tipping upwards and the price strength at 52 suggested that there were still more buyers than sellers in the market.
On the downside, BTC price could turn down from the current levels to produce a daily candlestick close below the $26,000 psychological level. If this happens, it would bring areas around $25,000 or $22,500 into the picture.
Source: https://www.analyticsinsight.net/bitcoin-price-looks-steady-above-26k-as-traders-eye-20-gains/