BTC Bulls Win Early Morning Battle, Will the $29K Resistance Hold?
- Bitcoin bulls gain momentum, eyes set on breaching resistance levels.
- Traders hesitant, 24-hour trading volume drops amid the recent volatility.
- Technical analysis indicates potential buying opportunities, but caution is advised.
During a bull-bear battle in the early hours of the day, Bitcoin (BTC) bulls emerged victorious, lifting the price from a 24-hour low of $28,155.8 to a 90-day high of $29,159.90 before hitting resistance. Although encountering resistance, BTC remained under bullish control as of press time, priced at $28,463.08 (a 0.42% increase over its opening price).
If the bullish momentum continues, the $29,159.90 barrier level may be breached, and the following resistance levels may be at $30,000 and $31,000, respectively. However, a sudden decline in demand could result in a bearish trend. If the bears grab control and breach the $28,155.8 support level, the following support levels to watch are $27,000 and $26,000, respectively.
The market capitalization increased by 0.38% to $549,854,482,269, indicating that investors are cautiously optimistic about current market conditions and are still prepared to invest in BTC despite recent volatility.
However, the 0.51% drop in 24-hour trading volume to $20,911,788,056 implies that traders may be hesitant to participate in the market activity and that present price levels may need to be more attractive for them to enter or exit their positions.
BTC/USD 2-Hour Technical Analysis
With linear moving Keltner Channel bands (top bar at $28914.32 and lower bar at $27718.71), BTC market bullishness is projected to continue in the short term, as the price is now trading above the channel’s middle line.
This movement indicates that traders are confident in the present uptrend and are willing to purchase on dips, which could push the price toward the upper band of the Keltner Channel.
Since the Moving Average Convergence Divergence (MACD) has moved below its signal line with a reading of 229.00, the power of the bulls in BTC has waned, and there is a possibility of a short-term correction in the near future, especially if the MACD continues to move further away from its signal line.
The histogram’s development of red bars reinforces the negative trend and warns that selling pressure may rise, potentially resulting in a drop in BTC’s price.
The Relative Strength Index (RSI) has lately gone below its signal line with a score of 52.45, indicating that BTC’s price momentum is waning but is not yet oversold. This activity warns traders to be cautious and actively monitor price action, as a further dip in the RSI could indicate a probable trend reversal.
BTC/USD 24-Hour Technical Analysis
On the 24-hour price chart, rising Keltner bands indicate that BTC is experiencing increased volatility and may be entering a bullish trend, indicating potential buying opportunities for traders. To reduce risk and optimize potential returns, traders should consider purchasing at the lower band of the Keltner channel and putting a stop loss at the higher band.
As the MACD blue line on the 24-hour price chart moves above its SMA line with a reading of 1253.10, the positive momentum in BTCUSD will likely continue, making it a favorable time to begin a long position. Nonetheless, traders should keep an eye out for any potentially market-moving news or events that could affect Bitcoin’s price.
However, the RSI movement below its signal line on the 24-hour price chart with a reading of 64.39 shows that a short-term negative trend is conceivable. This RSI pattern calls into question BTC’s capacity to maintain its present price level and could foreshadow a price correction in the near future.
In conclusion, BTC’s recent bullish momentum shows potential for further price increases. Still, traders should be vigilant for any shifts in market demand or negative news that could lead to a trend reversal.