Bitcoin has formed a support level above $26,800 following a 4% price surge in the last week, leaving analysts to speculate its potential to break the resistance at $29,200.
Since September 12, Bitcoin (BTC) has been on an impressive rally, increasing by more than 4%. As a result of the uptrend, BTC has now formed support above the crucial level at $26,700-26,800.
Image source: https://twitter.com/CryptoMichNL/status/1704069700647338150?s=20
After forming support above this level, Bitcoin (BTC) now trades above $27,000 for the first time in September. According to the prominent analyst Michaël van de Poppe, this means that the ongoing Bitcoin uptrend could continue.
Why $29,200 is a Crucial Level for Bitcoin
If the bull market continues, Bitcoin could face several areas of resistance. The first resistance is at $27,800. Crypto analytics firm IntoTheBlock has highlighted a significant resistance at around $29,200.
The BTC rally could face major resistance around this area because of the concentration of buyers. The data shows over 1.77 million addresses have purchased BTC at this price.
Image Source: https://twitter.com/intotheblock/status/1704089421945958433
Will the Uptrend Continue?
The data shared by IntoTheBlock correlates with a spike in activity on the Bitcoin network. The number of daily active addresses has soared to 1.08 million. This is the highest level of activity recorded on the Bitcoin network since July 2021.
Coinglass data Bitcoin
CoinGlass data also shows a rise in the value of BTC open interest. There is currently $12.31 billion in BTC open interest. This value of open interest has also been increasing along with the price of Bitcoin.
If most addresses hold on to their assets as the price approaches $29,200, then the Bitcoin uptrend could continue. As BTC clears the $29,200 resistance, it could rally as high as $32,000 in the coming week.
However, if these investors begin selling off their tokens as BTC tests the $29,200 level, the Bitcoin market sentiment could turn bearish, forcing the BTC price to lower.
Bitcoin Halving Could Cause a Price Rise
The market sentiment of investors could determine the short-term price action of Bitcoin. However, in the long run, market watchers have projected the price of BTC to increase significantly.
In April 2024, Bitcoin will undergo its fourth network halving. Crypto analysts have predicted that the leading crypto could set an all-time high before then.
BitQuant, a popular crypto commentator, has predicted a BTC price of $250,000 before April 2024. Pantera Capital predicts a price of $148,000 after the halving. Market analyst PlanB predicted a BTC price of $523,000 in April by 2025.
While the long-term predictions are clearly bullish, Bitcoin will need to struggle with market sentiment to determine its price action over the next few weeks.