Bitcoin Price Analysis: Four-Hour ChartAt the time of writing, BTC is trading at $21,600. The coin has broken the $20,000 mark and has managed to climb higher as seen on the chart above. If the cryptocurrency shows a rally from the consolidation phase, its immediate resistance lies at $24,000. A drop from the current price level will again drag BTC towards $20,000, which could extend the crash towards the $16,000 support level. As demand for BTC increased, the coin managed to gain 4% overnight. The volume of BTC traded declined in the previous session, indicating that the selling pressure on the charts had eased. This is a positive sign for bitcoin.
technical analysisAs bitcoin buyers return to the market, $21,000 is an important demand area for the coin. BTC has registered overbought positions in the last two days. Accordingly, the relative strength index was above the 60-mark, indicating heavy buying in the market. Bitcoin was also above the 20-SMA line, which meant that buyers were driving the price momentum in the market. The coin was above the 50-SMA indicating positive price movement.
Related Reading | Crypto Traders Lose $280 Million After Bitcoin Breaks Above $22,000BTC is showing signs of heavy accumulation in the near term. This is related to increased buying volume over the past 48 hours and can be considered bullish for the asset. Chaikin Money Flow, which indicates capital inflows and outflows, painted a positive picture. The CMF moved further away from the half line, suggesting an increase in capital inflows. The Awesome Oscillator was above the halfway line, the indicator responsible for showing the market trend. A reading above the halfway line means that bullish forces were present in the market, however, as the bars turn red, there could be a possibility of a price decline. If demand remains stable, bitcoin could move above its current price level and trade near its immediate price resistance.
Related Reading | Why Bitcoin Must Meet These Conditions If It Wants to Stay Above $20K
Featured image from UnSplash, charts from TradingView.com