Bitcoin Bears’ grip persists despite Bulls’ valiant efforts

• Bitcoin recently surged to $27,432, its highest value since August 29.
• Bitcoin’s trading volume increased by 97%, reaching $15 billion recently.
• Long-Term Holders currently possess 70% of the total Bitcoin supply.

Bitcoin , the leading cryptocurrency in terms of market cap, recently experienced a brief surge to $27,432. This is the highest value it has achieved since the GBTC’s triumph against the SEC on August 29. The crypto community is confused and optimistic as the price fell to $26,868 within five hours. Despite Bitcoin’s successful defense against bearish pressures over the previous week, it remains under scrutiny by bearish investors.

The recent spike in Bitcoin’s value can be traced back to changes in the wider financial environment. On Monday, Bitcoin saw a rise as U.S. interest rate analysts revised their forecasts, heightening the likelihood of the Federal Reserve keeping its existing lending rates for the rest of the year.

Furthermore, the U.S. Federal Reserve and the Bank of England are set to announce interest rate figures on Wednesday and Thursday, respectively. Industry experts suggest that indications of a potential economic downturn have bolstered investor trust in the cryptocurrency sector.

Significantly, the Federal Reserve’s monetary policy adjustments in the past year, involving an incorrect point rate hike since March 2022 to tackle inflation, contributed to the recent cryptocurrency market downturn.

In the last 24 hours, Bitcoin’s trading volume has significantly increased by 97%, reaching $15 billion. This surge coincides with the ongoing buzz around Bitcoin ETFs in the market. According to recent data from a leading cryptocurrency data aggregator, Long-Term Holders (LTH) currently possess 70% of the total Bitcoin supply, approximately 14,787,265 BTC. Moreover, the proportion of LTHs is steadily increasing, with about 69.2% of these long-term investors now in a profitable position after maintaining their Bitcoin holdings for an average period exceeding 155 days.

Where is Bitcoin projected to go?

An in-depth analysis of Bitcoin’s latest price fluctuations indicates a latent bearish trend in the daily chart. The 50-day exponential moving average (EMA), currently around $27,428, reinforces this perspective. The daily relative strength index (RSI) for Bitcoin is at 54, suggesting it is neutral.

The future trajectory of Bitcoin still needs to be determined. Should the price successfully exceed the resistance level of $28,000, it has the potential to challenge the $31,480 resistance. On the other hand, if it falls beneath the support level of $26,370, Bitcoin could potentially approach the crucial $25,000 level.