Holding this streak could lead to a quick move towards $27K

After being rejected from the $24K sentimental resistance area three times, Bitcoin price finally breached the threshold, forming higher highs and lows on the daily chart. Can buyers expect to see the $27K level reached next?

Technical analysis

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The daily chart

The weekly candle closes tonight (Sunday midnight UTC) and if Bitcoin succeeds in closing above the $24K level, a rally towards the $27K region is likely.

However, the 100-day moving average – a key support-resistance line – currently stands at about $25K, which is the current 2-month high set earlier today.

Nonetheless, the multi-month descending trend line and the $27K level will be the next major barriers to the primary cryptocurrency’s path in the event of a successful breakout of the 100-day moving average line.

The 4-hour chart

As mentioned in our previous analysis, a healthy rally is always accompanied by short to medium correction stages. The price usually experiences a correction of 50% – 61.8% during these correction phases.

These corrections are referred to as conventional Fibonacci retracement levels. Fibonacci retracements 0.5 and 0.618 levels often serve as significant resistances for the price.

As of this writing, BTC has reached Fibonacci’s 0.5 level (about $25K). If Bitcoin successfully crosses the threshold, the 0.618 level (at around $27K) will be a reachable target. Conversely, bearish momentum is likely to return if it fails to break the 0.5 Fib level, and a downtrend towards the $20K support area will be likely.

Onchain Analysis

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According to Onchain data provider CryptoQuant, miners distributed the most significant amount of Bitcoin in June 2022, when Bitcoin fell below $20K.

They have been under pressure because of the subtractive profitability. In contrast, during the recent consolidation phase of the market between $18K and $22K levels, Miners’ Reserve slowly increased. These miners were forced to sell Bitcoin to cover losses and reduce exposure to price volatility.

However, Bitcoin’s price has retreated towards the $25K level in recent weeks. The Miners’ Reserve chart shows that the miners have been paring their holdings since the recent rally. Consequently, if this resumes, the selling pressure caused by forced sellers will possibly push the price lower in the short term, falling to the $20K mark.