Bitcoin price surges to $26,875 as bulls target $27,500

Bitcoin, the leading cryptocurrency, has rallied for two consecutive days, reaching a high of $26,875 on Thursday, as bulls aim for the $27,500 resistance level. The positive momentum comes after a month of sideways trading and volatility in the crypto market.

Bitcoin futures prices rebound from six-month low

According to Kitco senior technical analyst Jim Wyckoff, Bitcoin futures prices traded higher again on Thursday, following a strong rebound from a six-month low on Monday. Wyckoff said that the Bitcoin bulls have stabilized prices and are now making some progress. He added that more gains in the near term would suggest a market bottom is in place.

Bitcoin price surges to $26,875 as bulls target $27,500
Bitcoin price surges to $26,875 as bulls target $27,500

Wyckoff also noted that Bitcoin’s price action is influenced by the movements of the U.S. dollar index and the stock market. He said that a weaker dollar and higher stock prices are bullish for Bitcoin and other raw commodity markets.

Bitcoin trend model remains negative

However, not all analysts are optimistic about Bitcoin’s short-term outlook. Bloomberg Intelligence crypto market analyst Jamie Coutts said that their trend model is still out of the market (negative) from $29,500. Coutts said that global liquidity contraction (M2 & CB Bal Sheets) has slowed, but is still deeply negative. He said that until this reverses, Bitcoin is unlikely to go higher and likely lower.

Coutts also pointed out that Bitcoin’s long-term price momentum is breaking, as the 12-month moving average is flattening and could turn negative soon. He said that this indicates a bearish trend change for Bitcoin.

Bitcoin fractal suggests possible relief rally

Market analyst Rekt Capital posted a chart showing a potential price path for Bitcoin based on a fractal pattern that occurred in 2019 and 2021. He said that as long as $26k holds as support, phase A-B of the fractal could be in play, which means a relief rally followed by a rejection. However, he warned that this could also reveal weakening support at $26k.

Rekt Capital also said that if Bitcoin breaks below $26k, it could enter phase C-D of the fractal, which means a deeper correction to the low $20k range.

Bitcoin pump target is $27,500

Market analyst Crypto Tony said that his target for the current pump is $27,500. He said that he is waiting for the daily close before he looks to long while Bitcoin holds above $26,600. He said that this level is a key resistance turned support for Bitcoin.

$BTC / $USD – Update Reclaiming the $26,600 level as we speak, so i waiting for the daily close before i look to long while we hold above this level. $27,500 is my target on this pump if we hold this level … — Crypto Tony (@CryptoTony__) September 14, 2023.

Crypto Tony also said that he expects some volatility in the next few days as options expiry approaches on Friday. He said that he will be cautious and use tight stop losses to protect his positions.

Altcoins benefit from Bitcoin’s momentum

As Bitcoin shows signs of life, some altcoins are also enjoying the bullish sentiment in the crypto market. According to CoinMarketCap data, Solana (SOL) was up 5% to $42.68, Litecoin (LTC) was up 4.8% to $62.32, and Polygon (MATIC) was up 4% to $0.28 in the last 24 hours.

Other notable gainers include Chainlink (LINK), Stellar (XLM), and Binance Coin (BNB), which were all up more than 2%. However, some altcoins were lagging behind Bitcoin, such as Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE), which were all up less than 1%.

The total cryptocurrency market capitalization was around $1.04 trillion, rising 1.38% in the last 24 hours. The dominance of Bitcoin was at 49.05%, indicating that altcoins still have room to grow.

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