Bitcoin’s four-week price fall has come to a stop, with the cryptocurrency posting its first weekly rise since August. The greatest cryptocurrency asset by market value has grown by around 2.5% to about $26,458 since last Saturday.
According to The Times, the digital asset was trading at $26,468 while market bulls had their sights set on the $27,000 level.
As a result of the upsurge, Bitcoin has reached its highest point this month, reducing worries that a possible September decline could undermine its outstanding year-to-date performance.
On the other side, Bitcoin is facing strong pushback. This resistance level can be seen as a powerful sell wall in the Binance order book.
The significant buying is visible at $26,000, though. Notably, despite higher-than-anticipated US inflation numbers issued this week, Bitcoin remained robust.
As the US Consumer Price Index data revealed a 0.6% increase in August, primarily driven by rising petrol prices, which accounted for more than half of the increase, risk emotions began to recover.
The bulls believe that the Federal Reserve’s hawkish narrative will weaken despite this spike in inflation data because the organisation is predicted to keep interest rates unchanged at its policy meeting next week.
With a 24-hour trading volume of almost $11.3 billion, according to data from CoinGecko, Bitcoin’s market value is currently over $516 billion, indicating an increase in liquidity.
Remember that the cryptocurrency market began the previous week with substantial losses, dropping below $25,000 for the first time since mid-June on worries that bankrupt crypto exchange FTX will soon start selling all assets digital assets, including more than $500 million worth of bitcoin.
When Bitcoin broke over the $25,500 resistance level in June, just as the market was becoming aware of BlackRock’s Bitcoin ETF registration, price actions confirmed such trends.
In BTC, the $26,000 mark is currently shifting from resistance to support. Every attempt to break through this level until the conclusion of the week was met with successful sales.
At least in the near future, it might be encouraging if Bitcoin maintains its price above $26,000 throughout the weekend.
As a result, the altcoin market, which includes BNB, Solana, Tezos, and GMX, has also experienced respectable rises across the board.
The altcoin’s surge comes just days after traders sold off the tokens, heightening the prospect that insolvent exchange FTX will gain bankruptcy court authority to sell assets worth billions of dollars from its crypto holdings.
Altcoin bears who made leveraged bets against SOL and other tokens in anticipation of a possible sell-off by FTX creditors now face the possibility of going bankrupt as a result of the surge.
When the market moves against a trader’s prediction, exchanges liquidate their holdings, leaving a gap in margin and the trader refusing to add more.
The forced liquidation of sell orders further increased the upward pressure on the SOL price and caused it to break over the $19 resistance level, increasing the price in the short term.
Positive news this week about asset management juggernaut Franklin Templeton joining the fight to list a Bitcoin spot exchange-traded fund and international lending institution Deutsche Bank’s plans to delve deeper into digital asset custody and tokenization provided the bulls more ammunition, driving prices higher.
