Bitcoin is struggling within reach, when can you expect an outbreak?
Bitcoin had previously succumbed to the bears and sank below the $ 20,000 mark for a significant period. At the time of going to press, however, the coin managed to rise above the $ 20,000 mark. Market conditions remain fragile and BTC may again fall below the $ 20,000 price level.
Sales volume had increased, which had caused BTC to fall on the chart earlier. As Bitcoin continued to fluctuate between $ 22,000 and $ 19,000 in the last month, it is crucial that the coin manages to trade above the $ 22,000 mark for a significant period of time for the bearish dissertation to be invalid.
Accumulation has also been low for the royal coin, as Bitcoin has been trading in oversold regions for most of this month. Long-term traders may not be on the winning side, but short-term traders can expect to earn something. However, it is too early to say whether Bitcoin is out of the intense volatility phase. Fluctuations in the price can again push BTC below the current trading level.
Bitcoin price analysis: Four hour chart
BTC was trading at $ 20,800 at the time of writing. The coin has formed a rising channel within which it has traded. It is too early to say whether BTC has succeeded in depicting an outbreak. The price of BTC must rise above $ 22,000 for this movement to be considered an outbreak.
The overhead resistance was $ 21,000 and then $ 22,000, respectively. A fall from the current trading level will drag BTC to the $ 19,000 zone and then to $ 17,000. The amount of BTC traded fell significantly, indicating that sales pressure has fallen on the four-hour chart.
Technical analysis
BTC moved upwards in a rising channel and the coin flashed increasing the buying pressure at press time. Relative Strength Index showed improvement as the indicator pushed upwards over the half-line, indicating declining sales strength.
With continued buying momentum, BTC may invalidate its bearish momentum. The price of the asset was over 20-SMA, which indicated that buyers were driving the price momentum. BTC was also above 50-SMA and 200-SMA which is considered to be extremely bullish for Bitcoin.
Related reading | An eruption above this level can help Polkadot recover on the chart
BTC in line with other indicators presented similar reading on Moving Average Convergence Divergence. The MACD determines the price momentum and where the coin is heading, it underwent a bullish crossover.
Due to the bullish crossover, the indicator showed green signal fields that were buy signals for Bitcoin. Buyers traded on it, and that is why the coin showed increased purchasing power. Parabolic SAR shows price direction and dashed lines under the candlestick point towards a positive price direction.
Related reading | TA: The Bitcoin price may rise to $ 22K, which is why BTC is still supported
Featured image from UnSplash, chart from TradingView.com
