BTC opened the day at $26,046.34 USD, slightly lower than the previous day's close of $26,284.32 USD. The price fluctuated in a narrow range between $25,954.00 USD and $26,148.00 USD for most of the morning session, showing a lack of clear direction and momentum.
However, around 11:00 UTC, BTC broke out of the range and surged to a high of $26,548.00 USD, breaking above the resistance level of $26,400.00 USD that had capped the price for several days. This bullish move was likely triggered by some positive news and sentiment in the crypto market, such as:
- The announcement of MicroStrategy, a leading business intelligence company and a major BTC holder, that it had purchased an additional 3,907 BTC for about $177 million USD¹.
- The launch of ProtonSwap, a decentralized exchange platform that allows users to swap BTC and other cryptocurrencies with low fees and high speed².
- The report of Glassnode, a blockchain analytics firm, that the number of active BTC addresses had increased by 30% in the past week, indicating a higher level of network activity and user engagement³.
After reaching the high of $26,548.00 USD, BTC faced some profit-taking and consolidation, as the price retraced to around $26,300.00 USD. However, the price remained above the support level of $26,000.00 USD and the 50-period moving average (MA), indicating that the bullish trend was still intact.
At the time of writing (15:00 UTC), BTC is trading at $26,354.00 USD, up 1.07% from the open. The price is also above the pivot point of $26,025.60 USD and the R1 level of $26,248.20 USD, suggesting that the bulls have the upper hand.
The technical indicators are also showing positive signs for BTC. The MACD histogram is above zero and increasing, indicating that the bullish momentum is growing. The RSI is above 50 and rising, indicating that the buying pressure is stronger than the selling pressure. The Stochastic oscillator is above 80 and pointing upwards, indicating that the price is in an overbought zone and may continue to rise.
Based on the above analysis, we can expect BTC to maintain its bullish bias for the rest of the day, as long as it stays above the support level of $26,000.00 USD and the 50-period MA. The next target for BTC is the R2 level of $26,471.40 USD, followed by the R3 level of $26,694.20 USD. These levels correspond to the previous highs and resistance zones in July.
However, if BTC fails to hold above the support level of $26,000.00 USD and breaks below the 50-period MA, then it may signal a reversal of the bullish trend and a return to the sideways range. The next support levels for BTC are the S1 level of $25,802.80 USD and the S2 level of $25,579.80 USD. These levels correspond to the previous lows and support zones in August.
Therefore, traders should pay attention to the price action and volume around these key levels and adjust their positions accordingly. As always, traders should also be aware of any potential news or events that may affect the crypto market and cause sudden price movements.