Bitcoin’s recent bullish momentum may signal upcoming price growth, but traders should watch for potential resistance levels. The Stochastic RSI indicator suggests that the market is oversold and could see a short-term correction, while the MFI indicator suggests a shift in investor attitude towards selling rather than buying.
Bitcoin (BTC) bulls have been on a rampage in the past 24 hours, carrying the price from an intraday low of $24,142.48 to its 90-day high of $26,514.72. However, 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.
Bullish pressure could lead to the stock price reaching $28,000 or $30,000 in the near future, but if negative pressure continues to dominate the market, the stock could drop down to $24,000 or $23,000.
The market capitalization and 24-hour trading volume have both jumped significantly in the past day, up 2.10% and 9.56% respectively to $481,798,709,117 and $53,002,445,989. This shows that investors are increasingly positive about the market and its future, with the rising trading volume reflecting the market’s growing interest and investors’ readiness to buy and sell at better prices. This could lead to an even more upward trend in the near future.
BTC/USD is currently experiencing a bullish trend, as indicated by the widening and advancing northward Bollinger bands on the 2-hour price chart. The upper band is serving as a resistance level, so traders might want to 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 upward movement of the price action towards the upper band suggests strong buying momentum and that the market may continue to go up in the near term. However, traders should keep an eye out for any possible resistance levels that could 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.
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 there is more selling pressure than buying pressure in the market, which could lead to a price decrease in the near future.