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- Bitcoin continued its upward journey by reclaiming the $27,000 price zone.
- A positive financing rate encouraged buyers.
Bitcoins [BTC] Falling back above $27,000, the global cryptocurrency market cap rose 0.54% over the past day, according to data from Coin market capitalization. BTC rose from $26.6k to $27.4k before settling at $27.1k at the time of writing. King Coin’s continued gains over the past week have seen optimism return to the market after a long period of bearishness.
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BTC bulls show their strength
Source: BTC/USDT on Trading View
August was an extremely bearish month for Bitcoin. Intense selling pressure in August wiped out all of BTC’s June/July gains. This caused the largest cryptocurrency to drop from a high of $31.7k to a low of $24.9k.
However, September brought some much-needed bullish price action. Bulls made a stand on September 12 with a strong bullish candle on the daily time frame. Afterwards, a series of bullish candles on the higher time frame pushed BTC from $25k to $27.5k.
Despite a brief pullback at the $27.5k resistance, the chart’s indicators were in favor of a continuation of the rally. The Moving Average Convergence Divergence (MACD) remained bullish, rising above the zero mark along with several green bars.
Similarly, the Relative Strength Index (RSI) highlighted strong buying pressure by rising to 61 at the time of writing.
Another bullish candle close to $27.5k could see buyers turning the level towards support in the coming days. Nevertheless, buyers should be aware of the selling threat still present due to the resistance level.
Still, the priority strongly supports another bullish rally from this price level, as evidenced by Bitcoin’s price action in mid-June.
Read Bitcoin’s [BTC] Price forecast 2023-20244
Buyers leaned on the futures market
Source: Coinglass
The financing rate data of Mint glass showed that market participants were strongly inclined towards a long-term bullish bias. Conversely, the coverage ratio was consistently positive in September.
Coupled with the network-wide accumulation of BTC in early September, the long-term bullish outlook for Bitcoin remains optimistic.