On Thursday, I wrote how the next move from Bitcoin hinged on $26,500.
That’s been a key horizontal level since mid-March.
Wednesday closed below the level, and BTC bulls tried to reclaim it on Thursday but failed.
However, Friday’s session looks set to close above $26,500 and potentially even $26,700.
Those are the two levels I wrote about on Thursday.
A daily close back above those would confirm a bullish reclaim and set Bitcoin’s sights on $27,500
But although $27,500 is resistance, a cluster of short liquidations at $27,800 could trigger a move a bit higher.
There’s also the top of a descending channel that comes in just above $27,500.
Speaking of channels, BTC is bouncing this week from ascending channel support that extends off the March lows.
As long as BTC is above this $26,000 area, I have to respect the upside potential.
That’s especially true when we consider that the S&P 500 closed the week above 4,175.
All in all, I’m cautiously bullish BTC toward $27,800.
Where Bitcoin goes from there will depend on whether bulls can break channel resistance or we get a deviation from $27,500.
Alternatively, a daily close below $26,400 would negate the bullish outlook and expose $25,200.
