Bitcoin’s Resilience: Maintaining $27,000 Amidst Market Volatility
22 Sep 2023
Bitcoin keeps close to $27,000, but risks to the downside dominate.
Even the Fed’s decision and remarks couldn’t convince crypto investors to leave their comfortable positions. The market capitalization of cryptocurrencies decreased by a small 0.25% on the day, which is substantially less than the Nasdaq’s losses (-1.5%) and more indicative of the dollar’s 0.3% rise during that time.
Around the 50-day moving average, the sell-off in Bitcoin accelerates and maintains a downward trend. The curve is close to $27.0K but has been sloping downward since the beginning of August when the most recent bearish trend began. However, with a decline near $26.8K, buying is once more the dominant trend in Bitcoin. This tug-of-war will end quickly.
The market will probably decide its course before Friday. For the time being, we continue to think that the likelihood of future drops is higher.
As a result of long-term BTC holders buying back the coins they sold to short-term investors in the spring, the future looks bright. Hoarders typically act in this way at the start of bull markets, according to Bitfinex.
BTC/USD TECHNICAL ANALYSIS DAILY CHART:
BTC/USD is currently trading within a down channel.
BTC/USD is positioned below the 5&20 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the buy zone, while the Stochastic oscillator suggests a negative trend.
Immediate Resistance level: 27171.40
Immediate support level: 26466.74
How To Trade BTC/USD.
After falling, the price of BTC/USD tried to rise again, but the previous resistance zone rejected it. Currently, the price is moving around the support zone; if the zone breaks down, an additional decline is expected.
TRADE SUGGESTION- STOP SELL – 26314.38, TAKE PROFIT AT- 25552.58, SL AT- 26942.86.