- Ali believes that a drop below $25,300 would eliminate the significance of the signal and nullify the bullish scenario.
- On Thursday, Bitcoin gained 2.7% after breaking out of a narrow range. A bullish candlestick, which is characteristic of a buying signal on the daily chart, was formed.
- As Bitcoin attempts to recover from a two-week price slump, it gained nearly 8% on August 29th. The recovery halted at $28,142, and the price closed the day at $27,726.
According to a famous analyst, Bitcoin must break the critical resistance level to reach the $28,000 level; What if it doesn’t break?
Is it Time to Buy Bitcoin?
A buying signal has emerged on the Bitcoin chart, as indicated by Ali, a well-known technical analyst in the cryptocurrency market. Ali observed that the TD Sequential indicator provided a buying signal on the 3-day Bitcoin chart.
While analyzing the signal, Ali noted that a close above $26,800 would propel Bitcoin towards $28,000. However, Ali believes that a drop below $25,300 would eliminate the significance of the signal and nullify the bullish scenario.
On Thursday, Bitcoin gained 2.7% after breaking out of a narrow range. A bullish candlestick, a characteristic of a buying signal on the daily chart, was formed. However, the developments of the past few weeks demand continuous bullish behavior from Bitcoin before confirming an uptrend.
$26,800 is critical for BTC
Bitcoin broke through a cluster of resistance on Thursday, but as indicated by Ali, $26,804 is marked as significant resistance. Bitcoin identified this resistance when it halted a significant upward move initiated with a classic reversal candlestick on the daily chart on August 23rd. As a result, the reversal candlestick signaled a bearish rejection and formed support at $25,346 according to TradingView data.
Bitcoin’s recent price movements have confirmed that Ali’s short-term targets for potential breakouts are aligned with the $28,000 price region, representing Bitcoin in August.
As Bitcoin attempts to recover from a two-week price slump, it gained nearly 8% on August 29th. The recovery halted at $28,142, and the price closed the day at $27,726. Bitcoin has been maintaining a downward trend since the recent rejection, but Ali’s predictions could prove correct if the flagship cryptocurrency makes an upward move.
