Bitcoin, the leading cryptocurrency, is facing difficulties in surpassing the significant resistance level at $27,500.
Despite recent bullish momentum, Bitcoin’s upward movement has been impeded by the persistent downward trendline.
The market sentiment remains cautious as traders closely monitor Bitcoin’s performance, waiting for a decisive breakthrough or a potential retracement.
The next price movements will likely be influenced by the ability of Bitcoin to overcome these obstacles and establish a new direction.
Tether Allocates Millions to Bitcoin as Part of its Reserves Diversification Plan
On Wednesday, Tether, the organization behind USDT, the largest stablecoin by total market cap, announced its intention to acquire Bitcoin as part of its reserve backing strategy.
By incorporating the leading cryptocurrency into its balance sheet, Tether joins the ranks of other prominent entities, diversifying their holdings.
The primary objective behind Tether’s upcoming purchase of Bitcoin is to diversify its reserve holdings that back the USDT token.
This strategy ensures that the company maintains the 1-to-1 peg of USDT to the US dollar.
Tether plans to allocate approximately $222 million, which represents 15% of its net profit, for this purchase.
The decision to invest in Bitcoin was made considering its strength and potential as an investment, according to Tether’s CTO Paolo Ardoino.
The news of Tether’s significant Bitcoin purchase to back its USDT has bolstered Bitcoin and contributed to its positive momentum on Thursday.
Bitcoin Price
Bitcoin is trading at $27,290, experiencing a less than 1% increase on Thursday.
BTC is facing challenges in reclaiming its $30,000 level from the previous month and is currently hovering around $27,000.
At the moment, Bitcoin is facing a significant resistance around the $27,500 level, which is acting as a double-top pattern for BTC.
If Bitcoin manages to break above the $27,500 level across multiple timeframes, it has the potential to target the next resistances at $27,700 or $28,000.
Further demand for BTC could even propel it above the $28,000 level, with the next resistance likely to be found around $28,300.
However, Bitcoin is currently struggling to surpass the $27,500 level, which is reinforced by the double top pattern, downtrend line, and the formation of a bearish timer and spinning top candlesticks below this level.
These indicators suggest a possible weakness in the upward trend, with Bitcoin potentially retracing lower towards $27,000 and $26,800.
Therefore, it is important to monitor the $27,500 level as a significant pivot point for Bitcoin’s performance today.
This article was originally published by CryptoNews.