The Bitcoin price managed to hold its momentum and surpass the $23,000 threshold. The coin has shown bullish momentum over the last week. Bitcoin has shown a slight appreciation over the past 24 hours but it is still above its local support level.
The bulls are also evident in the technical outlook for the king coins. The bulls may gain more strength if Bitcoin prices surpass $24,000 and remain there for an extended period.
It has not been easy for cryptocurrency to stay above $24,000 over a prolonged period.
Bitcoin’s bullish thesis was also supported by buyers who returned to the market. If Bitcoin trades lower than $24,000 for a long time, there is always the possibility of Bitcoin retracing its steps. BTC may find support at $22,000 to $21,000 during the next trading session.
Review of Bitcoin Prices: A Four-Hour Chart
BTC traded at $23,300 as of the writing. The Bitcoin price has seen a 11% increase in the past week, which allowed buyers to re-enter this market. Bitcoin’s price appreciated immediately after rising demand.
It could be called a relief because Bitcoin’s price reached $24,000 just as it was. This is why the price movement has retraced in its chart. BTC had overhead resistance at $24,000. Any push beyond that will see it reach the next price ceiling.
BTC needs to recover $28,000 to make bearish thesis null. The coin could fall below the $22,000 mark and reach $20,000. Last session saw an increase in Bitcoin trading volume, which indicates that there is more buying pressure.
Technical Analysis
The increase in buyer numbers has helped the coin maintain its bullishness. On the hourly chart, the technical outlook was similar. Bitcoin prices have declined marginally in the past 24hrs due to increased buying pressure over similar periods.
Relative strength index soared past the halfway line, which indicates that sellers were outnumbered by buyers at press time. The Bitcoin price was higher than the 20-SMA, which indicated that buyers are driving price momentum.
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BTC’s major indicators have displayed steady bullish momentum. The buy signal also appeared as soon the buyers returned. This is the indicator of market direction and price momentum.
MACD displayed a little green signal that was tied to a buying signal after undergoing a bullish crossover.
Directional Movement Index shows the price direction as well as whether the momentum is growing. DMI showed that the +DI was at the top of the -DI line, signaling positive price action. The Average Directional Index, in red, was however losing strength as it fell close to the 20-mark. This suggests a weakness in price momentum.
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