Here’s Why it is Important for Bitcoin (BTC) Price to Hold Steady Above the $26k Level

Here’s Why it is Important for Bitcoin (BTC) Price to Hold Steady Above the $26k Level

Time Stamp: June 7, 2023 9:42 AM
Source Node: 2124189

Over the past few weeks, the financial markets have experienced significant fluctuations and volatility. In the last 24 to 36 hours alone, there have been notable developments that warrant attention. However, the largest cryptocurrency by market capitalization, Bitcoin, has shown strength and is rallying even amid the negative developments. 

In a new YouTube video by Eric Krown Crypto, he explained a significant development, which is the occurrence of a daily bullish engulfing candle. This candlestick pattern formed when Bitcoin traded below Monday’s low and closed above Monday’s high. 

Such patterns, according to him, often indicate a bullish reversal. This bullish engulfing candle suggests a potential upward move in Bitcoin’s price and as long as Bitcoin remains above the $26,500 level, the bias favors the bulls.

He also spoke about the five-day Gaussian channel analysis that provides further insights into Bitcoin’s price action. Currently, Bitcoin is bouncing off the mean band, demonstrating resilience and suggesting higher chances of testing and playing between the top side of the range (around $30,000) and the mean band. 

This pattern is an example of previous periods when Bitcoin reclaimed the mean band, leading to a prolonged period of consolidation before breaking above the top side. This historical reference suggests a potential bullish outcome if Bitcoin maintains its current trajectory.

Also Read: Bitcoin Live News: BTC Price Defies Market Turmoil, Poised To Hit $35k Soon

The analyst also highlighted the weekly moving averages that offer insights into Bitcoin’s long-term trend. As long as Bitcoin remains above the green 55-week EMA (Exponential Moving Average), a silver cross between the 21-week and 55-week EMAs becomes inevitable. Previous examples of such crosses have often resulted in significant price movements. Therefore, it is crucial for Bitcoin to hold above the $26,000 level to confirm this bullish signal.

At the time of writing, Bitcoin is trading at $26,804 and is up by more than five percent in the last 24 hours.

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