Bitcoin price surpassed USD 24,000 on Wednesday.
For the first time since April, the price of bitcoin broke above the 50-day moving average.
The strong selling trend in the bitcoin market appears to have been overcome as the bullish momentum that took the price of bitcoin (BTC) above $24,000 on Wednesday July 20 continues. While some analysts claim that $27,000 is the next resistance, for others it is the starting point for a deeper bull run.
The price of BTC has not exceeded USD 24,000 since last June 13 and is a milestone for the bitcoin and cryptocurrency market, as the sector’s total market capitalization begins to consolidate above $1 trillion.
Since last June 13, the total value of the cryptocurrency market has remained below a trillion dollars. At the time of writing, BTC is trading at $23,856, while the cryptocurrency market capitalization is $1.066 trillion.
Is $27,000 the next BTC price resistance?
A support zone at the $27,500 level was defined in May and early June, before the sharp decline in price materialized. The June pullback led the price to touch $17,600 on the 17th of this month before embarking on a rally.
Analysis from @whalemap on Twitter determines that between the price level of $27,100 and the current price there is an area of very weak demand. This area is visible on the following chart in which a representation of the distribution of BTC according to their purchase price is superimposed on the price chart.
Reasons for a bullish stance on BTC price action include the various support tests at the $18,800 level since June 18, which led to a price reversal.
Another bullish sign for bitcoin price is that the price has been below the 50-day moving average since last April 10. On Tuesday 19, the price of bitcoin exceeded this moving average, with a touch of humor. “Bitcoin just closed a daily candle above 50 MA for the first time since Moses rode dinosaurs in the Bible. April is April,” Melker tweeted Tuesday.
On the other hand, Ki Young Ju, CEO of analytics firm CryptoQuant, predicted that $30,000 would be the starting point for another bull run. Among the reasons for Young Ju is the fact that despite the average price of BTC acquired by Microstrategy being 30,664 USD, this company continued to buy BTC.