Bitcoin Price Touched $23,300, Will Bearish Thesis Be Invalidated?
The Bitcoin price has managed to break through and keep the momentum above the $23,000 mark. Over the past week, the coin showed bullish momentum. Over the past 24 hours, Bitcoin has shown a slight increase in value, but it has remained steady above its local support level.
Technical views on the royalties also suggested that the bulls have taken control. If the Bitcoin price manages to move past the $24,000 price mark and trade there for a significant period of time, the bulls could gather further strength.
The cryptocurrency has struggled to stay above the $24,000 price level for a long time.
Buyers also returned to the market and that helped Bitcoin continue its bullish thesis. However, there is always a possibility that Bitcoin could go back on the chart if it trades below the $24,000 mark for long enough. If so, BTC may find support between $22,000 and $21,000 during the next trading sessions.
Bitcoin Price Analysis: Four Hour Chart
BTC was trading at $23,300 at the time of writing. In the last week, the Bitcoin price registered close to 11% increase, which helped buyers re-enter the market. As soon as the demand increased, the Bitcoin price also showed appreciation.
The current price action can also be termed as a relief, this is because the moment the Bitcoin price hit the $24,000 mark, the coin came back on the chart. Overhead resistance for BTC was at $24,000, a push above that will ensure BTC touches the next price ceiling.
For the bearish thesis to be invalidated, BTC needs to reclaim $28,000. A drop from the current price could pull the coin to $22,000 and then to $20,000. The volume of Bitcoin traded increased last session, indicating increased buying pressure in the market.
Technical analysis
The coin has managed to maintain its bullishness due to the increase in the number of buyers. The technical outlook painted a similar picture on the four-hour chart. Bitcoin price rose little over the past 24 hours as the coin saw increased buying pressure within the same time frame.
The Relative Strength Index shot past the halfway line, meaning buyers outnumbered sellers at press time. Bitcoin price was above the 20-SMA line, which also signaled that buyers were driving price momentum in the market.
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BTC’s key indicators have shown steady bullish momentum. As soon as the buyers returned, the buy signal for the coin also appeared. Moving Average Convergence Divergence shows the price momentum and direction in the market.
MACD underwent a bullish crossover and showed a small green signal line which is associated with a buy signal.
Directional Movement Index reads price direction and whether momentum is increasing. According to the DMI, the +DI line was above the -DI line which signals positive price action. However, the average directional index (red) was losing strength as it fell near the 20 mark, showing weak price momentum.
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Featured Image From UnSplash, Charts From TradingView.com
