Bitcoin (BTC) experienced another strong rally and is trading at $26,634, up 3.62%, with a market capitalization of $519 billion. BTC price is showing strength on the technical charts, with a further possible increase to $31,000.
Popular crypto analyst Ali Martinez explained that the 3-day Bitcoin chart points to a potential buy signal according to the TD Sequential indicator. If buying pressure for BTC increases, there is a possibility that prices could move towards the middle or upper boundary of the channel, with targets at $28,000 or $31,000.
However, it is important to keep a close eye on the TD risk line, especially at the $24,500 level, as it acts as a critical point for validation, says Martinez.
Courtesy: Ali Martinez
Currently, Bitcoin is trading slightly above the $26,500 support level, which was previously a resistance level, and it appears to be forming a double top pattern as it stabilizes near the $26,800 resistance level.
There is a descending trend line at around $26,750 that could act as a barrier to Bitcoin’s upward move. If Bitcoin manages to break this trendline, its next target could be the $27,000 mark.
Looking further ahead, the $27,600 level represents a significant resistance point. If Bitcoin successfully breaks above this level, it could pave the way to reaching the $28,000 milestone and further up to $31,000.
Key events affecting Bitcoin price this week
In the coming week, a few key events will influence Bitcoin price dynamics.
An important event to watch is on Wednesday, September 20th, when all eyes will be on the Federal Reserve’s announcement regarding the Federal Funds Rate, which is currently set at 5.50%.
On the same day, market watchers will closely monitor the FOMC economic forecasts, the FOMC statement, and the subsequent FOMC press conference scheduled for 6:30 p.m. Any dovish or hawkish stance from the Fed could cause significant volatility in traditional markets, with potential implications for the crypto market.
On Thursday, September 21, attention will turn to jobless claims data, with analysts expecting a slight increase to 222,000 from 220,000 previously.
As the week closes on Friday, September 22nd, investors will be keeping an eye on the Flash Manufacturing PMI and Flash Services PMI, with expectations at 47.9 and 50.8 respectively. These indices provide insight into economic health and, if they deviate from expectations, can indirectly affect the price of Bitcoin by influencing market sentiment.
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