Bitcoin (BTC) remains steady at $26,000 amidst ongoing regulatory uncertainty in the cryptocurrency industry. While some investors are concerned about the impact of regulatory changes on the market, others see signs of a new bull run on the horizon.
Why Is $26k A Critical Level For Bitcoin?
According to crypto analyst Crypto Con, Bitcoin’s resistance at the 2nd Line on the Market Value to Realized Value (MVRV) at $31,000, followed by its support at the same level, echoes a pattern in 2016. This pattern suggests that Bitcoin could be on the cusp of a new bull run that will surpass previous highs.
Crypto Con recently commented on the significance of these trends. “Reaching the mid-top line is an inevitability, just like all the cycles that have come before,” he stated. “Bitcoin has proven its resilience time and time again, and I believe that we are about to witness a new phase of growth in the cryptocurrency market.”
That being said, Crypto Con’s analysis is based on historical trends and patterns, which suggest that Bitcoin could be in a favorable position for growth.
On the same note, Cryptocurrency trader CJ recently shared his analysis of Bitcoin’s price movements on Twitter, breaking down the key levels to watch.
On the weekly chart, CJ notes that Bitcoin has closed below its 200 Moving Average (MA) for the first time in 12 weeks. The price has dipped into a former range, but a close back above this level would be a positive sign. If Bitcoin can reclaim its June open of $27,000, CJ sees the potential for the price to reach $33,000.
On the daily chart, CJ points out that the previous week’s high and low remain untapped, as does the daily demand level just below the range high. CJ sees a potential long opportunity if the previous week’s low is swept into the daily demand level and then reclaimed and a short opportunity if the previous week’s high is swept into the June open and then closes back below.
Furthermore, on an intraday/1-hour basis, CJ suggests keeping an eye on the mid-point of the weekly range, which is currently capping the price to the upside. Another potential trade opportunity will arise if the local range low is swept and then reclaimed, with a target of the local range high.
Federal Reserve Holds Interest Rates Steady, Bitcoin Remains Stable
The Federal Reserve has announced that it will not increase interest rates this month, and it is unlikely that there will be any rate cuts in 2023. The Fed’s goal remains a 2% inflation rate, and it has signaled the possibility of rate increases later this year.
The Fed has also indicated that it expects two rate hikes, each with a .25bps increase, by the end of the year, which is generally considered a hawkish statement.
Despite these developments, Bitcoin has remained relatively stable, unable to move significantly in either direction. This is likely due to several factors, including ongoing regulatory uncertainty.
Featured image from iStock, chart from TradingView.com