Bitcoin price has managed to power through and retain its momentum above the $23,000 mark. Over the past week, the coin displayed bullish momentum. In the last 24 hours, Bitcoin showed minor appreciation, however, it has remained steady above its local support level.
Technical outlook of the king coin also suggested that the bulls have taken control. If Bitcoin price manages to move past the $24,000 price mark and trade there for a considerable period of time, then the bulls could garner further strength.
The cryptocurrency has struggled to remain above the $24,000 price level for a long time.
Buyers also came back into the market and that helped Bitcoin to continue its bullish thesis. There is however always a possibility that Bitcoin might retrace back on its chart if it trades below the $24,000 mark for long enough. In that case, BTC might find support in between $22,000 and $21,000 over the next trading sessions.
Bitcoin Price Analysis: Four Hour Chart
Bitcoin was priced at $23,300 on the four hour chart | Source: BTCUSD on TradingView
BTC was trading for $23,300 at the time of writing. In the last week Bitcoin price registered close to 11% hike which helped buyers re-enter the market. As soon as demand rose, Bitcoin price also displayed appreciation.
The current price action could also be termed as a relief, this is because the moment Bitcoin price hit the $24,000 mark, the coin retraced on its chart. Overhead resistance for BTC stood at $24,000, a push above which will ensure that BTC touches the next price ceiling.
For bearish thesis to be rendered invalid, BTC has to reclaim $28,000. A fall from the present price mark can drag the coin to $22,000 and then to $20,000. Volume of Bitcoin traded increased last session indicating increase in buying pressure in the market.
Technical Analysis
Bitcoin displayed increase in buying strength on the four hour chart | Source: BTCUSD on TradingView
The coin has managed to sustain its bullishness owing to increase in the number of buyers. The technical outlook painted a similar picture on the four hour chart. Bitcoin price gained minorly over the last 24 hours as the coin saw increase in buying pressure within the similar time frame.
The Relative Strength Index shot past the half-line which signifies that buyers were more than sellers in number at press time. Bitcoin price was above the 20-SMA line which also signalled that buyers were driving the price momentum in the market.
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Bitcoin flashed buy signal on the four hour chart | Source: BTCUSD on TradingView
BTC’s major indicators have displayed steady bullish momentum. As soon as the buyers returned, the buy signal for the coin also showed up. Moving Average Convergence Divergence depicts the price momentum and direction in the market.
MACD underwent a bullish crossover and displayed a tiny green signal bar that is tied with a buying signal.
Directional Movement Index reads the price direction and if the momentum is gaining strength. According to DMI, the +DI line was above the -DI line which signals positive price action. Average Directional Index (red) was however losing vigour as it fell near the 20-mark portraying a weak price momentum.
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Featured Image From UnSplash, Charts From TradingView.com
