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Bitcoin held its ground ‘very well’, reclaiming $27k would confirm the bullish outlook

Bitcoin held its ground 'very well', reclaiming $27k would confirm the bullish outlook

Bitcoin (BTC) has been predominantly trading within a consolidation pattern in recent weeks as the overall market experienced uncertainty.

The United States Securities Exchange Commission (SEC) further intensified this uncertainty by initiating legal actions against cryptocurrency exchanges Coinbase and Binance, alleging the listing of unregistered securities.

In light of these circumstances, Mihai_Iacob, a cryptocurrency analyst on TradingView, pointed out that Bitcoin showcased remarkable resilience by effectively maintaining its position, noting that it ‘held very well,’ he said in a post on June 13. 

Bitcoin price analysis chart. Source: TradingView

He noted that historically when adverse news fails to impact an asset significantly and does not result in a technical breakdown, it often leads to an upward trend. In this case, Bitcoin appears to exhibit this characteristic, suggesting a potential turnaround is on the horizon.

The analyst pointed out that from a technical standpoint, Bitcoin’s price has found strong support at the $25,000 level, a significant convergence point defined by a trend line originating earlier this year and a horizontal support level. 

Bitcoin’s bullish point 

With Bitcoin holding above $26,000, the analyst suggested that it would confirm a bullish outlook if the maiden cryptocurrency reclaims the $27,000 spot. 

“From a strictly technical perspective, 25k is strong confluence support, given by the trend line started at the beginning of the year and the horizontal level. Also, the recent drop from 30k is corrective and a falling wedge. That being said, BTC back above 27k would confirm the bullish outlook and could lead to a retest of the recent high or even a new one around 35k,” he said. 

Amidst the uncertain trajectory of Bitcoin’s price, the cryptocurrency’s resilience in the face of recent challenges has instilled a sense of optimism among investors and traders. Notably, this optimism was further fueled by the news of BlackRock (NYSE: BLK), the world’s largest asset manager, filing for a Bitcoin exchange-traded fund (ETF).

It is essential to highlight that regulatory actions taken by the SEC have been a significant source of bearish sentiment affecting the overall crypto market. Concurrently, the U.S. inflation rate unexpectedly dipped to a low of 4%, briefly boosting the value of the U.S. dollar.

However, the decision of the Federal Reserve to maintain unchanged interest rates has heightened market uncertainty, with traders grappling with the potential long-term implications of a tighter monetary policy.

Bitcoin price analysis

By press time, Bitcoin was trading at $26,494 with daily losses of less than 0.5%. On the weekly chart, Bitcoin is up almost 3%. 

Bitcoin seven-day price chart. Source: Finbold

Under technical analysis, the summary retrieved from TradingView aligned with the ‘buy’ sentiment at 10. Moving averages recommended ‘buy’ at 9 while oscillators remained ‘neutral’ at 8. 

Bitcoin technical analysis. Source: TradingView

Currently, the $30,000 level remains a crucial resistance position for the maiden digital currency.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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