Arcane Research: Bitcoin price targets $27,000

If bitcoin holds the $20,700 level, the price is likely to move into the $27,000–$28,000 range, according to the latest report from Arcane Research.

Analysts note that since July a series of higher local lows has been forming.

The uptrend ran into resistance at $24,000. Subsequently, a correction moved the price to levels below $23,000.

“If bitcoin falls below $20,700, it will mark a declining minimum. This is a bearish signal in the context of technical analysis,” the experts explained.

If bitcoin holds above the aforementioned level, the price will register another rising local minimum. This would open potential for further movement toward the $27,000–$28,000 range, Arcane Research believes.

The firm noted that much depends on the dynamics of the US stock market, with bitcoin’s price closely correlated to it. The dynamics of the key rate, the Fed, also play a key role.

“Rising interest rates raise the cost of capital and, thus, are a driver of falling stock prices. Tech shares are hit hardest. As the degree of institutionalisation of bitcoin grows, it has become closely linked to traditional financial markets,” the researchers explained.

They noted that if the stock market continues to decline, the downtrend in digital gold will persist.

Earlier ForkLog reported a probable short-term correction of bitcoin, based on data from the on-chain indicator AASI.

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