Bitcoin prices plunged dramatically from $30,000 to $20,000 between June and July. Bitcoin’s price movement has been within the $20,000 to $21,000 range. Bullishness has been the short-term technical outlook for Bitcoin.
But it’s too soon to consider the price rise as relief. BTC can reach the next price barrier if it manages to keep above the $21,000 mark. The coin’s price has seen a slight rebound as buyers showed optimism.
Bitcoin saw overbought conditions during the last 48-hours, indicating a bullish outlook. BTC could reach $24,000 with continued buying power, but it is possible for BTC to pull back.
The Four-hour Chart: Bitcoin Price Analysis
BTC trades at $21,600, at the time this article was written. BTC has risen to $21,600 and passed the $20,000 threshold, as shown in the chart above.
If the cryptocurrency experiences a rebound following consolidation, the immediate resistance to the currency is at $24,000
BTC’s current price will drop to $20,000, which would fuel another crash at the $16,000 level. Overnight, BTC saw a 4 percent increase in demand.
BTC volume traded in the last session decreased, indicating that the selling pressure on the chart had declined. This was a good sign for Bitcoin.
Technical Analysis
Bitcoin buyers are returning to the market. The $21,000 price mark marks an important demand region for the coin. Overbought conditions were registered by Bitcoin in the past two days.
The Relative Strength Index, which was also above 60 marks, indicated that there is a lot of buying power in the market.
Bitcoin also crossed the 20-SMA, which indicated that buyers are driving market price momentum. Positive price momentum was indicated by the coin’s high above 50-SMA.
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BTC’s short term volatility showed evidence of large accumulation. It is due to an increase in buying during the last 48 hours, and can be considered bullish. Positive picture painted by the Chaikin Money flow, which shows capital outflows and inflows.
CMF rose from the half line suggesting capital inflows growth. Amazing Oscillator, which is used to show market trends, was at the top of the line.
The market was bullish if it had a reading higher than the halfway line. But, the bars turning red could signal a possible price pullback. Bitcoin may trade close to its immediate resistance price if the demand for Bitcoin continues to be stable.
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Featured image by UnSplash. Charts from TradingView.com
