Bitcoin is trading at $26,460 with a bullish bias, up 1.5% on the day as it attempts to recoup last week's losses. The big crypto dropped to $25,000 after an extended consolidation between $28,500 and $30,000.
Some analysts believe that it will not be too long before Bitcoin leads the rest of the market in the next bull run. One such analyst is Dan Morehead, founder and managing director of Pantera Capital who believes that the market "has seen enough." In an August 23 post of X, Morehead said that BTC has "recently experienced the longest period of negative year-over-year returns in its history, lasting 15 months," adding "There is just so long markets can be down."
Bitcoin's performance has been noticeably dismal over the last quarter compared to other similar periods in the past. This means that a lift-off could be on the radar for BTC.
BTC trades in a second consecutive bullish session on the daily chart. If the imminent seller congestion at $27,000 weakens and gives way, the next line of resistance would be $28,000 ahead of the much-awaited return to $30,000.
Traders seeking to buy the largest cryptocurrency by market and are cautious at the moment may want to wait until the Moving Average Convergence (MACD) indicator flashes a buy signal. This call to go long on BTC would be sent once the 12-day Exponential Moving Average (EMA) rises above the 26-day EMA.
The Relative Strength Index (RSI) would make its bullish case as it rebounds from the oversold region below 30 into the neutral area and finally into the overbought territory above 70.
On the downside, a daily candlestick below the upper boundary of the demand zone at $26,000 would see BTC oscillate within this region for some time, with the lower limit at $24,750 providing support. This would represent a 6.5% drop from the current price.
As September draws near and the imminent release of the Federal Reserve's economic policy decision looms, traders are advised to exercise prudence. In recent FOMC minutes, members expressed a consensus in favor of additional rate hikes to address inflation concerns within the US. The implementation of these rate hikes is anticipated to have a tempering effect on risk asset markets, including Bitcoin and cryptocurrency, potentially leading to an extended period of recovery.
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