The bulls seem to have control over the bitcoin price as it has risen. BTC has gained over 7% in the past 24 hours according to its chart.
In the last week, the crypto’s gain has been more than 8%. Bitcoin is now in an upbeat position, having crossed the $20,000 mark.
Because of the significant rise in demand, buyers are returning to the one day chart.
While the bulls may be looking for $22,000 as their next resistance level, there are still two important levels the coin must reach.
A price pullback will occur if buyers exit again the market. The bullish momentum in Bitcoin has also led to massive rallies of major altcoins.
As they can decide whether the bulls will continue to grow in strength, the next trading session is crucial for BTC. BTC’s current price will drop to $19,000.
One-Day Chart: Bitcoin Price Analysis
BTC trades at $20,800 as of the writing. BTC has now broken out of its lengthy consolidation phase.
Since the price movement is no longer range bound, Bitcoin must now reach $22,000.
The coin’s immediate resistance was located at $21,100, while the price at the other level was $21,600. Bitcoin will plummet to $19,000. If there’s a loss of momentum by the bulls or price pullbacks, Bitcoin may fall.
Still, the $19600 is a strong support for Bitcoin. In the last session, Bitcoin trading volume increased. This indicates that Bitcoin buying power also saw a significant uptick.
Technical Analysis
Technical indicators favored the bulls. As seen in the 1-day chart, the cryptocurrency was closer to the zone of overvaluation.
Relative Strength Index moved past the halfway mark and above the 60 line, which is considered very bullish for this coin.
Bitcoin’s price may enter the overbought area if there is continued bullish momentum. The price could decline if it moves into the overvalued, overbought region.
The Bitcoin price was higher than the 20-SMA which indicated more buyers and a stronger price trend.
BTC is a clear indication that buyers have gained in strength, as it has displayed a buy signal at its chart.
Moving Average Convergence Divergence is a measure of overall momentum and price direction.
MACD formed green signals bars that were signifying buy, increasing in size.
Parabolic SAR shows both the trend and direction of price. Positive price action is indicated by the dotted lines below the candlestick.