Bitcoin: A reclaim of $27k remains elusive

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Bitcoin defended the range lows near $26k.
• Key liquidity and selling interest levels exist at $26.8k and $27k. 

Bitcoin [BTC] faced a price rejection at $26.85k during the daily trading session on 27 September following a delay spot ETF by the US SEC. The US regulator postponed a decision on ARK 21 Shares’ proposed spot BTC ETF until January 2024. 

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Following the delay, some market analysts opine that other BTC ETF applications could face the same fate. At press time, BTC traded at $26.46k, slightly above the short-term support of $26.4k. 

Can Bitcoin reclaim $27k?

Source: BTC/USDT on TradingView

The price rejection level on 27 September coincided with the daily timeframe’s 50-EMA (Exponential Moving Average). Besides, daily candlestick close sessions have happened below 26.4k since 24 September. 

Ergo, BTC could remain suppressed at the range-lows ($25.8k) despite a recent bounce-off. Notably, the range low aligned with the daily bullish order (OB) of $24.8k – $26.0k (cyan). So, a further drop could see a rebound at the cyan area. 

Conversely, BTC could smash the 50-EMA hurdle and reclaim $27k, especially if there is a market catalyst like a US SEC approval of an ETH ETF in October. If so, bulls could target $28k and the range-high. 

The RSI position at press time indicated price direction could go in either direction, as neither buyers nor sellers had absolute leverage. But capital inflows into the BTC market weakened, as shown by the retreating CMF. 

Here are key Bitcoin sell and liquidity levels

Source: Mobchart

According to Mobchart, a real-time order book tracking platform, there were significant sell limit orders at $27k and $27.5k. There were also some sell limit orders at $26.8k (50-EMA at publication), as shown by red lines. 

On the buy side, $26k and $25.8k had considerable buy limit orders at press time. The inference is that BTC price action could oscillate between these key buy and sell limit orders. 

Source: Coinglass

How much are 1,10,100 BTCs worth today? 

Based on the liquidation map, the range low ($25.8k) and mid-range ($27k) were key liquidation levels, as shown by the orange histograms. The inference is that BTC could see a substantial price reaction in these high liquidity areas. 

So, BTC could defend the range-low but face another rejection at the mid-range of $27k or $26.8k.