Bitcoin Price Takes Aim at $21,000, Will It Be a Broader Trend Change?
The Bitcoin price has once again registered an increase in the last 24 hours. In that time frame, the coin has risen by 3%. This has also helped other major altcoins go green at press time.
In the last week, BTC has risen almost 8%. If the bulls continue to push, it will not be a difficult move for the Bitcoin price to claim the $21,000 mark.
The technical outlook has again turned against the bulls. The buyers have taken control of the price in the market. Demand has also increased for the asset.
The chance of a price hike cannot be completely ruled out. The coin needs to barrel past its overhead resistance to reach the $21,000 price mark.
Even if the coin goes back to the $21,000 level, it is important that BTC trades above this level for long enough for the bulls to hold, leading to a broader trend change.
There may be difficult resistance for the Bitcoin price at $20,800. Clearing this level could help the coin move to $21,000.
For Bitcoin to continue its bullish thesis, the $21,200 price ceiling needs to break past the $21,000 price level when it breaks.
Bitcoin Price Analysis: One Day Chart
BTC was trading at $20,700 at the time of writing. Bitcoin price has once again retaken the $20,700 price level as it fell south on the chart over the past two days.
If demand keeps up, BTC will attempt to trade near the $21,000 price level. The overhead resistance for the coin was $20,800.
BTC could reach $21,000 if it breaks above this level. Another key resistance mark for BTC awaits at $21,600.
Going past the aforementioned level could be the beginning of a broader trend change.
On the other hand, loss of $20,700 will bring BTC to $20,300 and then to $19,600.
The amount of BTC traded in the last trading session was in green, indicating that buying power had risen on the chart.
Technical analysis
BTC had documented a drop in purchasing power, however at the time of writing the coin showed a steep recovery on the chart.
The last time BTC recorded this amount of buying power was nearly 8 months ago. The Relative Strength Index shot past the 60 mark, suggesting that buying strength was much more than selling pressure.
Bitcoin price was above the 20-SMA line, which pointed to accumulation in demand and buyers driving the price momentum in the market.
Other technical indicators have also shown bullish signals on the chart.
Bitcoin noted a buy signal on the chart, indicating that the coin may move higher.
Moving average convergence divergence indicates the price momentum and the strength of the price action.
MACD formed green signal fields on the half line, which was the buy signal for the coin.
The Directional Movement Index was optimistic, which meant that the price direction gained stability and was bullish. The +DI line was above the -DI line, representing positive price action.
The average directional index (red) was below the 20 mark, but formed an upward movement, showing that the momentum will increase in strength.
