Bitcoin Price Prediction: Hangs Onto $26,000 Support

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A sideways pattern has taken over the crypto market, particularly for distinguished cryptos like Bitcoin (BTC) and Ethereum (ETH).

Following final week’s rejection from highs above $25,000, Bitcoin price has struggled to stay above $26,000 support. This comparatively trendless market could be attributed to the shortage of liquidity and disinterest from retail buyers who worry having to capitulate if declines rally beneath $25,000 assist.

The Bullish Outlook In Bitcoin Price

The day by day chart exhibits the formation of a rectangle sample more likely to validate a bullish breakout to $37,746. However, with the market construction nonetheless weak, one other minor deep to substantiate assist of $25,000 and acquire liquidity is required earlier than the rectangle breakout.

The 200-week Exponential Moving Average (EMA) (purple) is in line at $56,606 to soak up many of the promoting strain and restrict the necessity for Bitcoin price to stretch the down leg decrease beneath $25,000.

BTC price chart — BTC/USD weekly chart | Tradingview

Analysts and merchants have conflicting views over the next direction Bitcoin is likely to take. For occasion, Rekt Capital, adopted by over 353k individuals on X (previously Twitter) not too long ago opined that “BTC is positioned for a weekly close above ~$26,000 but below the bull market support band where price is rejecting.”

#BTC is positioned for a Weekly Close above ~$26,000 however beneath the Bull Market Support Band the place worth is rejecting

Could the Bull Market Support Band quickly reject worth again to ~$26k for a retest try?

If so, that might be a pivotal retest$BTC #Crypto #Bitcoin pic.twitter.com/fDPk4KabJR

— Rekt Capital (@rektcapital) September 17, 2023

In one other replace, the dealer added that “Bitcoin has since dropped (to $26,000 support). However, that doesn’t change the possibility of potential upside wicking beyond the Lower High resistance in the event of a 2019-style October return of +10% next month.”

“It just changes the peak price point of such a move which would be ~$28710 from current prices.”

Historically, August and September are months characterised by the bottom liquidity however in keeping with Rekt Capital, “October tends to be a very positive month for Bitcoin.”

Nevertheless, there are numerous similarities between 2019 and 2023 primarily based on the desk shared on X by Rekt Capital which suggests that Bitcoin worth could handle to rally by 10% solely in October to $29,200.

In such a case, merchants can count on BTC to type an extended wick above the resistance proven on the chart in yellow earlier than rolling again and confirming the transfer as a aid rally.

A look on the weekly chart exhibits Bitcoin worth beneath two of the bull market’s transferring common indicators; the 21-week EMA (crimson) and the 100-week EMA (blue) and above the 200-day EMA.

This detrimental sentiment coupled with a promote sign from the Moving Average Convergence Divergence (MACD) could affirm the sweep by way of assist at $25,000 forward of the run-up towards $30,000.

Invalidating The Bullish Market

Sustained motion beneath the first assist at $25,000 would do numerous injury to the anticipated bull market. Investors are more likely to promote in panic and add to the promoting strain. A minor sweep beneath $25,000 may develop right into a full-blown sell-off to $22,000 and if push involves shove retest $20,000 earlier than one other vital restoration begins to play out.