Bitcoin price analysis shows that volatile price action is slowly turning into higher lows. The price is currently at $21,950 and the pair is moving towards the $21,000 resistance with the candle slowly and steadily heading upwards. The confluence area near $20,000 is turning into an accumulation zone for near-term gains.
However, there are no clear signs of recovery as the low volatility and low volume over the weekend failed to inspire confidence in the bulls. Volatile price movements do not result in large price movements in either direction.
After retesting the $21,000 price, there seems to be renewed hope for a bull run as the new week progresses.
Bitcoin price action in the last 24 hours: BTC returns to higher lows at $21,000
Bitcoin price analysis shows that there is demand in the $19,000 area. The weekend’s temporary bounce shows courage to protect the $18,000 support area. However, the run to $20,500 doesn’t inspire confidence. The ongoing correction also continues on the daily chart as the pair continues to move higher rather than significantly lower.
The descending triangle pattern hasn’t shown a breakout yet, but the pair is slightly bullish at the moment. If the price breaks above, the bull cycle will basically continue at the top of the triangle with the price moving towards $22,500. The first major resistance on the road lies at $22,240 where the bears should see some heavy buying activity.
BTC/USD 4-hour chart: a break above the 50-day moving average is important
The bulls are finally looking to target the $30,000 area to reverse the downtrend on the daily chart. The 100-day moving average and 50-day moving average don’t make things any easier in the $24,000 price zone, according to Bitcoin Price Analysis. Expectations for significant gains depend on macro factors, volume, volatility and regulatory issues in different countries.
Bitcoin price analysis shows that the RSI is stuck in the 50 area where the probability of a crash on low volume increases exponentially. Technical indicators are currently in equilibrium, including MACD, which does not show a direct cross. The indecision won’t last long as both bulls and bears look for the right time to enter the trade.
The sharply descending price channel is still breaking down on the hourly chart, according to Bitcoin Price Analysis. The lower border of the triangle is being tested and the consolidation is pressuring the bulls to make a comeback. The bearish wedge doesn’t help the bullish case as the price moves lower on the higher time frame charts.
Bitcoin Price Analysis Conclusion: Bulls Need Big Volume
The downward trend line of the descending triangle pattern indicates stagnation. Whether it moves up or down depends on the price action near the bearish wedge. If rejected, the price will quickly move to the lower end near $18,000. The downtrend line will define the trend and in the worst case scenario, can further sink the price to $16,000.
Read also – Litecoin price analysis
With the current uncertainty in the financial and crypto markets, predicting certain trends can lead to heavy losses for traders. No wonder even day traders sit on the sidelines and analyze the ecosystem before making a big trade.