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Bitcoin Struggles Under $27,000: Time to Short?

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on September 18, 2023 | 1 min
Updated on Jan 09, 2024
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  • Bitcoin currently hovers around the $26,400 support, eyeing the crucial $27,000 resistance.
  • Following a minor pullback to $26,412, BTC showcases recovery potential, surpassing the 50% Fibonacci retracement and positioning above the $26,500 threshold and the 100-hour SMA.
  • Key resistances and supports are delineated at $26,850 and $26,500 respectively.

In recent days, Bitcoin has shown signs of wavering strength, consistently battling to maintain a position above the $27,000 threshold. While some market analysts are advocating for a bullish stance based on previous performances, the current scenario poses the question: is it an opportune moment to take a short position on Bitcoin? With a mix of technical signals and external factors at play, investors find themselves at a crossroads, evaluating the potential risks and rewards of the crypto landscape.

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BTC/USD Price Chart
BTC/USD Price Chart – Source: Tradingview

Bitcoin Price Prediction: Technical Outlook

Bitcoin’s valuation is firmly anchored at the $26,400 support region. A potential bullish trajectory might ensue if BTC manages to surpass and consolidate above the pivotal $27,000 resistance threshold. After navigating past the $26,200 resistance, Bitcoin briefly scaled the $26,800 mark, albeit without sustaining its gains.

 

Subsequent to this, a slight retracement brought the price down, bottoming out at approximately $26,412. Currently, the cryptocurrency demonstrates tendencies of resurgence, having surpassed the 50% Fibonacci retracement level from its descent from a peak of $26,887 to its low at $26,412.

 

Currently positioned above the $26,500 mark, Bitcoin also comfortably sits above the 100-hour Simple Moving Average (SMA). Additionally, an emerging bullish trend line has been identified with supportive attributes around the $26,500 mark on BTC/USD’s hourly chart.

 

The immediate challenge for Bitcoin lies around the $26,700 mark, corresponding to the 61.8% Fibonacci retracement from its aforementioned swing. Key resistance points are established at $26,850 followed by a significant barrier at $27,000.

 

A consolidation above the resistances at $26,850 and subsequently, $27,200, could herald a pronounced bullish phase. This could potentially challenge resistances at $27,500, post which, an amplified bullish momentum might target the $28,500 territory.

 

Conversely, should Bitcoin falter in surpassing the $26,850 resistance, bearish tendencies might resurface. Immediate supports are recognized at the $26,500 mark, in tandem with the trend line. A further decline could challenge the $26,200 support. A definitive breach below this could set the stage for a descent towards the $25,650 level.

Stay tuned for more updates!

author
About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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