Bitcoin Price Stability Strengthens as Bulls Capitalize on Improving Market Sentiment
The price stability of Bitcoin (BTC) is becoming stronger as traders and investors choose to HODL and avoid short-term speculations. The leading cryptocurrency has increased by 1.7% on Monday, reaching $27,100, as bulls take advantage of the improving market sentiment.
This rise above $27,000 comes just a week after the release of the US inflation results for August. Despite the inflation news and the potential for another rate hike, Bitcoin’s live price and the crypto market showed minimal reaction.
Assessing the Bearish Price Fractal for BTC Price
Bitcoin has been forming both bullish and bearish fractals since its bull run in 2021. Traders identify bearish fractals when the price moves up, forming an upside-down “U-shape” before moving back down.
Bearish Bitcoin Fractal
Is Bitcoin in Phase A-B?$BTC #Crypto #Bitcoin pic.twitter.com/Y0mOUaH5vO
— Rekt Capital (@rektcapital) September 18, 2023
According to crypto analyst and trader Rekt Capital, BTC price is currently going through another bearish fractal. After breaking resistance at $27,000, it may retest the next hurdle at $27,200 before potentially dropping to lows around $23,312.
The four-hour chart indicates that the path of least resistance is to the upside, with BTC price potentially reaching stronger resistance at $28,000 as bullish investors expand their scope beyond $30,000.
Positive Indicators for Bitcoin’s Price Outlook
A buy signal from the Moving Average Convergence Divergence (MACD) suggests that the odds are in favor of the bulls. Traders are advised to seek more exposure to BTC longs as the blue MACD line crosses above the red signal line.
The position of the short-term moving averages, including the 50 Exponential Moving Average (EMA), 100-day EMA, and 200-day EMA below Bitcoin, indicates a favorable environment for a rally.
The SuperTrend indicator also presents a buy signal that supports the new uptrend. This indicator incorporates readings from the average true range (ATR) to gauge volatility, and BTC price turns bullish when the SuperTrend provides support.
Although experts predict that Ethereum may outperform Bitcoin in October if the SEC approves the first futures-based ETH exchange-traded fund (ETF), Bitcoin’s live price remains the better performer for now.
Hot Take: BTC Price Relies on Confirmation of Support at $27,100
In order to escape potential bearish fractals, Bitcoin’s price needs to confirm support at $27,100. Failure to do so could lead to a sell-off below the $25,000 support level, potentially dropping as low as $23,312.
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