Bitcoin was previously beaten by the bears, and fell below $20,000 for quite some time. However, Bitcoin managed to climb above $20,000 at press time. BTC’s market conditions remain fragile. It could again drop below $20,000 in price.
BTC’s selling volume has increased, which caused it to drop on its chart. Bitcoin has been fluctuating between $19,000 to $22,000 over the past month. Therefore, it is important that Bitcoin trades at least $22,000 above its current level for a significant period in order to disprove the bearish thesis.
The king coin’s accumulation has been very low, since Bitcoin was traded in highly oversold areas for much of the month. Although long term traders are unlikely to be profitable, traders who trade in the short-term can still expect some gains. However, it is too early to know if Bitcoin has moved beyond the volatile phase. BTC’s current trading level could fall again if there are fluctuations in the price.
Review of Bitcoin Prices: A Four Hour Chart
At the time this article was written, BTC was listed at $20,800. BTC has traded in an ascending channel. BTC is yet to show a breakthrough. This movement must be deemed to have a breakout if the BTC price rises above $22,000
Overhead resistance was at $21,000, and at 22,000 respectively. BTC could fall to $19,000, and then $17,000 if it falls below its current trading levels. The amount of BTC that was traded fell significantly, which indicates that there is less selling pressure on the hourly chart.
Technical Analysis
BTC was trending upwards and flashed an increase in buying pressure as of press time. Relative Strength Index showed a recovery, as the indicator rose above the halfway mark, which indicated falling selling power.
BTC’s buying momentum can be weakened by continued bearishness. BTC’s price was higher than the 20-SMA, which indicates that buyers are driving price momentum. BTC also surpassed the 50-SMA as well as the 200-SMA, which are considered extremely bullish.
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BTC was compared to other indicators and showed similar results on the Moving Average Divergence Divergence. MACD is used to determine price momentum. It also indicates where the coin will go.
Because of the bullish crossover the indicator displayed green signals bars that were a sell signal for Bitcoin. It was acted upon by buyers, and the coin showed an increase in buying power. Parabolic SAR shows price direction. The dotted lines beneath the candlestick indicate positive price direction.
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Featured image by UnSplash. Chart from TradingView.com