Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bitcoin continued its upward journey by reclaiming the $27k price zone.
- Positive funding rate urged buyers on.
Bitcoin’s [BTC] foray back above $27k saw the global crypto market capitalization increase by 0.54% over the past day, according to data from Coinmarketcap. BTC rose from $26.6k to $27.4k before settling at $27.1k as of the time of writing. The sustained gains of the king coin over the past week have seen optimism return to the market after an extended period of bearishness.
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BTC bulls display their strength
Source: BTC/USDT on Trading View
August was an extremely bearish month for Bitcoin. The intense selling pressure throughout August saw BTC erase all of its June/July gains. This sank the biggest cryptocurrency from the high of $31.7k to the low of $24.9k.
However, September brought much-needed bullish price action. Bulls made a grandstand with a strong bullish candle on the daily timeframe on 12 September. Afterward, a series of bullish candles on the higher timeframe propelled BTC from $25k to $27.5k.
Despite a brief pullback at the $27.5k resistance, the on-chart indicators favored a continuation of the rally. The Moving Average Convergence Divergence (MACD) remained bullish and surged above the zero mark along with several green bars.
Similarly, the Relative Strength Index (RSI) highlighted the strong buying pressure by climbing to 61, as of press time.
Another bullish candle close at $27.5k could see buyers flip the level to support over the coming days. Nevertheless, buyers should be mindful of the selling threat still present from the resistance level.
Yet, precedence strongly supports another bullish rally from this price level as evidenced by Bitcoin’s price action in mid-June.
Read Bitcoin’s [BTC] Price Prediction 2023-20244
Buyers backed in the futures market
Source: Coinglass
The funding rate data from Coinglass showed that market participants leaned strongly toward the long-term bullish bias. Conversely, the funding rate has been consistently positive in September.
Along with the network-wide accumulation of BTC in early September, the long-term bullish prospects for Bitcoin remain optimistic.
