The cryptocurrency analysis and trading page Whale Analysis highlighted in an X post earlier today that Bitcoin (BTC) was able to break through the major resistance level at $26,228 over the past 24 hours. In the post, the page added that the next threshold that BTC will need to overcome is $27,400.
BITCOIN UPDATE 🚨🚨#BTC has broken through its crucial resistance at $26,228 and is currently trading at $26,550.
The next major resistance is at $27,400, and it’s the same price where we have set our TP2.
If it fails to hold the 20-day EMA support level, it can revisit the… pic.twitter.com/9kd7wDhs2r
— Whale Analysis (@Whaleanalysis) September 17, 2023
Whale Analysis did warn, however, that the market leader’s price may be at risk of correcting in the next couple of weeks. According to the post, the cryptocurrency’s value could fall back to within the $25K region if it fails to hold above the 20-day EMA line.
Daily chart for BTC/USDT (Source: TradingView)
From a technical standpoint, BTC was still trading above the 20-day EMA line, which was situated at around $26,306.92. Furthermore, the 9-day EMA line was attempting to cross above the 20-day EMA line as well. Should these 2 technical indicators cross, it will result in a significant bullish technical flag being triggered.
This specific technical flag will signal that short-term momentum has shifted in favor of buyers. Subsequently, the leading cryptocurrency’s price may rise in the following 24-48 hours. Should this bullish technical flag be validated, then BTC may attempt to flip the resistance level at $26,917.47 into support.
Thereafter, continued buy support may lead to BTC’s price rising to the level mentioned in Whale Analysis’s post today at $27,400. However, a break below the 20-day EMA line will invalidate the bullish thesis. In this scenario, the leading cryptocurrency’s price may lose the support of the $26K mark, resulting in BTC trading back within the $25K region.
Meanwhile, CoinMarketCap indicated that BTC was trading at $26,550.76 at press time. This was after the cryptocurrency printed a 24-hour gain of 0.23%. Furthermore, this latest increase in BTC’s price added to the cryptocurrency’s weekly performance – pushing it to +2.71%.
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