The price of Bitcoin has been fluctuating between $20,000 and $21,000, respectively. The coin’s short-term technical outlook has been bullishly pointing.
However, it is still too early to label the upward price trend as a relief rally. BTC can aim for the next price barrier if it manages to stay afloat above the $21,000 price level. On the chart, buyers have expressed optimism, and as a result, the price of the coin has shown some relief.
Over the previous 48 hours, Bitcoin experienced overbought conditions, which gave the chart a bullish outlook. BTC may be able to reach $24,000 if buying pressure remains strong, but a bullish pullback is still possible.
Four-hour chart analysis for bitcoin
At the time of writing, the price of BTC was $21,600. As can be seen from the above chart, the coin has surpassed the $20,000 threshold and is rising.
The cryptocurrency’s immediate resistance, if it emerges from the consolidation phase, is $24,000.
BTC will once more be dragged to $20,000 by a decline from the current price level, which could trigger a crash to the $16,000 support level. BTC saw an overnight gain of 4% as demand for the currency increased.
The volume of BTC traded in the previous session decreased, which may have indicated that the chart’s selling pressure had subsided. This was encouraging for Bitcoin.
Technical Assessment
Returning buyers of bitcoins made the $21,000 mark a significant area of demand for the currency. Over the past two days, BTC has experienced overbought conditions.
Accordingly, the Relative Strength Index was above 60, which indicates that the market has strong buying power.
Additionally, Bitcoin was trading above the 20-SMA line, indicating that buyers were the ones driving the market’s price momentum. The coin was trading above the 50-SMA, a sign of rising price momentum.
BTC displayed strong accumulation signals over the short term. This is associated with increased buying over the previous 48 hours and is bullish for the asset. A favorable picture was painted by the Chaikin Money Flow, which measures capital inflows and outflows.
The CMF surged upward and away from the half-line, indicating an increase in capital inflows. The indicator that represents the market trend, Awesome Oscillator, was above the half-line.
When the bars turned red, however, there was a possibility of a price pullback even though the reading was above the half-line, indicating the presence of bullish forces in the market. Bitcoin may surpass its current price level and trade close to its immediate price resistance if demand remains steady.
