The cryptocurrency market is experiencing a surge today, with the price of Bitcoin surpassing $27,000 for the first time since late August. However, new data suggests that caution is warranted for bullish investors. At the time of writing, Bitcoin is trading at $27,200, reflecting a 3% profit in the last 24 hours. Over the past week, the cryptocurrency has seen a 9% gain, outperforming other top 10 cryptocurrencies by market cap.
Pseudonymous trader Rekt Capital has been closely monitoring a Bitcoin price fractal, which indicates a potential re-test below $20,000 for the cryptocurrency. This fractal suggests that Bitcoin has formed a double-top price pattern, signaling downside pressure. However, it may take some time for the spike in selling pressure to gain strength.
If the Bitcoin fractal holds true and the cryptocurrency completes the double top, there is a high chance of a brief relief rally. In this scenario, Bitcoin could continue its current trajectory and reach levels between $28,500 and $29,000 before declining into critical support. However, the fractal could be invalidated if the price of Bitcoin surpasses $31,000 and reaches yearly highs. Other bullish scenarios in the long term involve a weekly close above the resistance at around $29,000 and the support at $19,000 holding in case of further downside.
Additional data from crypto analytics firm TheKingFisher suggests that the current Bitcoin price rally may lose steam due to limited upside liquidity. Liquidity pools on the downside are waiting for significant Bitcoin traders to push prices into those levels. In the short term, $26,700 is a potential critical support in the event of a spike in selling pressure.
It is important for investors to consider these factors and exercise caution as the Bitcoin market stands at a crossroads. While the current rally is encouraging, the presence of potential downside pressure and limited upside liquidity should be taken into account. As always, thorough analysis and risk assessment are crucial in navigating the volatile cryptocurrency market.
– BTCUSDT on Tradingview: https://www.newsbtc.com/bitcoin-news/end-of-the-road-why-a-bitcoin-price-surge-to-28500-could-lead-to-a-crash/(https://www.tradingview.com/chart/?symbol=BINANCE%3ABTCUSDT)
– RektCapital on Twitter: https://www.newsbtc.com/bitcoin-news/end-of-the-road-why-a-bitcoin-price-surge-to-28500-could-lead-to-a-crash/(https://twitter.com/rektcapital/status/1703781186743521646)
– TheKingFisher on Twitter: https://www.newsbtc.com/bitcoin-news/end-of-the-road-why-a-bitcoin-price-surge-to-28500-could-lead-to-a-crash/(https://twitter.com/kingfisher_btc/status/1703757752189763989/photo/1)
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