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- Bitcoin’s bullish momentum signals the potential for price growth, but traders should watch for resistance.
- Stochastic RSI indicates an oversold market and potential for a short-term correction.
- MFI suggests a shift in investor attitude towards selling rather than buying.
Bullish strength in the Bitcoin (BTC) market has reached a new high in the previous 24 hours, with bulls successfully carrying the price from an intraday low of $24,142.48 to its 90-day high of $26,514.72. Nevertheless, as of press time, the bulls’ reluctance to overcome resistance caused the Bitcoin price to linger at $24,902.92, a 2.28% increase from its previous close.
If bullish pressure continues to rule the market, the potential following resistance levels after breaching $26,514.72 is $28,000 and $30,000, respectively; however, if negative pressure prevails, the support levels to monitor are around $24,000 and $23,000.
During the upturn, the market capitalization and 24-hour trading volume jumped by 2.10% and 9.56% to $481,798,709,117 and $53,002,445,989, showing the increasingly positive attitude among investors. The rising trading volume reflects the market’s increased interest and investors’ readiness to purchase and sell at more excellent prices, which may accelerate the upward trend soon.
BTC/USD 24-hour price chart (source: CoinMarketCap)
The BTC/USD 2-hour price chart’s widening and advancing northward Bollinger bands signal that the present bullishness would likely persist soon, with the upper band serving as a resistance level. As a risk management strategy, traders might purchase in the middle band on dips and place stops below it. The upper band hits around $26881.41, while the lower band touches $19736.90, indicating this positive outlook.
The price action’s movement toward the upper band shows strong buying momentum and implies that the market may continue to go upward in the near term. However, traders should keep a watch on any possible resistance levels that may trigger a price reversal.
When the Chaikin Money Flow (CMF) rises to 0.29, the optimistic view in the Bitcoin market is bolstered by increased purchasing pressure. This anticipation is because a positive and growing CMF represents the asset’s accumulation and signals that buyers are prepared to pay greater prices to acquire it, which might lead to a price rise soon.
BTC/USD chart (Source: TradingView)
Although BTC is bullish, the stochastic RSI reads 18.26 and moves below its signal line, indicating that the market is oversold. This movement reflects that BTC is ready for a short-term price correction before resuming its upward trend.
This action warns traders to be careful and to wait for confirmation of a trend reversal before establishing any long positions since the market may face a brief downturn.
Because the Money Flow Index (MFI) is moving south with a value of 72.60, the positive momentum may be fading. This motion suggests that a negative trend may be on the horizon, prompting traders to take caution and wait for more warnings before taking action.
This MFI movement indicates that capital is departing the market, suggesting a possible change in investor attitude toward selling rather than purchasing.
BTC/USD chart (source: TradingView)
Bitcoin’s bullish momentum continues, but traders should watch out for resistance levels and potential price corrections before establishing long positions.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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