Bitcoin Remains Resilient Above $26,000 Despite Inflation Rise
Bitcoin has had a successful week, surging over 5% to trade above $26,000 even after the release of the US Consumer Price Index, which indicated a 0.6% inflation rise. The cryptocurrency has shown resilience and minimal price drops.
Currently hovering around the $26,500 mark, market analysts and crypto enthusiasts are speculating on Bitcoin’s next move.
Analysts Predict Double Price Barriers for Bitcoin’s Path to $30,000
Glassnode co-founders Jan Happel and Yan Allemann have shared their insights on Bitcoin’s possible path to reaching $30,000 in the coming weeks. According to them, Bitcoin is targeting a move above $27,000 after reclaiming support at $26,000.
The analysts note that the Bitcoin Risk Index has dipped into the 60s, indicating a positive shift in sentiment towards the asset. This suggests that more investors are considering Bitcoin as a favorable investment.
Predicting Resistance Levels for Bitcoin
If this positive sentiment translates into buying pressure, Bitcoin could experience an upward trend. However, Happel and Allemann anticipate significant resistance at $27,400 and $28,200 as traders might choose to take profits at these levels.
Despite these barriers, the analysts believe that Bitcoin will eventually overcome them and reach the psychological barrier of $30,000.
Is A Bitcoin Rally Imminent?
Data from Into The Block reveals that Bitcoin’s transaction fees this week amounted to $6.3 million, a 40% increase from the previous week. While this may indicate network congestion that drives users away, it could also signify a high level of adoption.
Additionally, Into The Block reports that Bitcoin recorded exchange inflows of $10 million and outflows of $70 million. This suggests growing interest from investors, which could potentially lead to a significant price gain.
Hot Take: Bitcoin Holds Steady Above $26,000 Amidst Inflation Concerns
Despite inflation concerns reflected in the US Consumer Price Index, Bitcoin has remained resilient above $26,000. Glassnode analysts predict that the cryptocurrency may face resistance at certain price levels but ultimately reach $30,000. Transaction fees and exchange inflows further indicate growing interest in Bitcoin. While these are only predictions, it will be interesting to see how Bitcoin’s price evolves in the coming weeks.
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