Is Bitcoin (BTC) Ready to Explode? $26K Holding Its Breath for Explosive Action

14 Sep 2023 by Crypto Presale 2 min read

Over the last 24 hours, Bitcoin (BTC) made a noteworthy move, climbing 1.62% to reach $26,300. This increase follows a recent dip earlier in the week, when it briefly fell to $24,900. Zooming out a bit, Bitcoin has gained 2% in the past week and a remarkable 58% since the start of the year.

Market experts believe one of the reasons for this recent rise can be attributed to revived enthusiasm in the competition for a Bitcoin Spot ETF. Franklin Templeton, a prominent player in the asset management sector, has formally submitted an application to the US SEC. This move has seemingly contributed to the positive mood in the cryptocurrency market, boosting investor’s confidence in Bitcoin’s long term potential.

Technical Analysis

Bitcoin has been on a steady decline since early July, dropping by over 15% since that time. The selling pressure has been caused by several fundamental events, one of which is the US SEC's cases against major exchanges and some cryptocurrencies.

Right now, Bitcoin (BTC) is resting on a major key level around the $25,600 region, with a lot of power tussling going on between the bears and the bulls. However, the Relative Strength Index (RSI) is showing signs of bullish divergence, indicating that if the support level is sustained, we might see Bitcoin rise and reclaim the $31,000 high in the coming weeks.

4 Hour Timeframe

Source: Tradingview

Bitcoin price has been consolidating for the most part of September until early this week, when we saw the price crash below $25k, which later happened to be a fakeout. Currently, BTC is flirting with a resistance around the $26,300 zone; a break and close above this zone can see the price of BTC rise to $28k in the next few days. With the Exponential Moving Averages (EMA) crossing over upwards; showing signs of bullish momentum, and the Relative Strength Index (RSI) climbing up and nearing the 60% mark, it looks like we might see BTC hit $28,000 soon and then $31,000 if the fundamentals remain bullish.

What’s Next for Bitcoin?

There are a number of things that might impact BTC's next move. First, there are delays in approving Bitcoin exchange-traded funds (ETFs). Second, the US Securities and Exchange Commission (SEC) is looking closely at how cryptocurrencies are used. Lastly, there's worry about a possible big sell-off of recovered assets on the FTX exchange, which could affect the market.

If all these fundamentals align positively and we see a break above the immediate resistance at the $26,300 level, then reaching $28,000 in the short term and $31,000 in the midterm is a possibility.

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