Bitcoin (BTC) bears got off to a bad start, but bulls have since taken control, sending the price from the day’s low of $26,209.29 to a new 90-day high of $27,787.81. Since Wednesday, the number of profitable transactions on the BTC/USD network has increased by a factor of 2.4, thanks to the recent surge in Bitcoin’s price, which has seen it hit $27,000 for the first time in 9 months.
If bullish momentum pushes the price over the $27,787.81 resistance level, the next possible barrier levels are at $30,000 and $35,000, respectively. A correction in the BTC market is possible if negative pressure takes hold and the price falls below the $25,000 support level.
The market cap jumped to $528,268,909,401, while the 24-hour trading volume rose to $47,287,240,334. The recent uptick may be attributed to the growing interest among institutional investors in Bitcoin (BTC) as a store of value and inflation hedge due to the cryptocurrency’s stellar performance over the last few days.
BTC/USD 4-Hour Technical Analysis
Widening Bollinger Bands on the BTC price chart, with the upper band touching $28164.83 and the lower bar touching $23369.02, indicate that the present positive trend will continue. This move implies that traders are becoming more confident in BTC’s upward trajectory and are prepared to purchase at higher prices, signaling the possibility of further price rises soon.
When the price movement moves towards the upper range of the Bollinger Bands, this might imply that BTC is approaching overbought territory, and a short-term correction is conceivable.
The Chaikin Money Flow indicator advances northward on the 4-hour price chart with a score of 0.31, showing a net influx of money into BTC, signaling optimistic sentiment. But, traders should also watch any possible bearish divergence between the price and the Chaikin Money Flow indicator.
With a score of 76.82, the Relative Strength Index on the BTCUSD chart indicates that the BTC market is now overbought. This score might imply a possible reversal in the near future, particularly if accompanied by a bearish divergence on the Chaikin Money Flow indicator.
This movement indicates that purchasing pressure is receding and that the trend may soon flip to a negative one, giving traders a favorable chance to take short positions in the market.
BTC/USD 24-Hour Technical Analysis
The Bollinger bands on the 24-hour price chart are broadening, confirming that the bullish momentum is here to stay, as the upper band hits $27179.05 and the lower band reaches $19318.76.
This movement and the fact that the price is advancing above the top bar and producing a green candlestick pattern suggest that the market is in a strong uptrend and that buyers are in charge. Traders may watch for possible buying opportunities on pullbacks to the Bollinger bands’ middle band.
However, the CMF rating of 0.03 shows that there may be a lack of purchasing pressure in the market, which might restrict BTC’s potential gain. This movement might signal that traders are cautious about establishing new long positions at present levels and are waiting for more clarity on market direction before making any substantial transactions.
The RSI reading of 73.15 on the Bitcoin price chart indicates that it is overbought, which might lead to a short-term price comeback. This action warns traders to be wary of a price correction soon and to consider taking gains if a recovery develops.
In conclusion, Bitcoin bulls surge as the price hits a 90-day high of $27,787.81, but caution advised as overbought conditions signal possible correction.