Disclaimer: The conclusions of the following analysis are the sole opinion of the author and should not be considered investment advice.
Bitcoin’s recent rise opens up possibilities for a trend-changing rally as it approaches a two-month resistance range. To sum this up, a jump above the four-month trendline support (white, dashed) has strengthened near-term buying power.
With the 20 EMA (red) and 50 EMA (cyan) offering immediate support, buyers can aim to cross the $24.6K barrier in the coming sessions.
Any bullish crossover at the 20/50 EMA is likely to propel BTC upwards before reversing. At press time, BTC is trading at $24,155, up 4.82% over the past 24 hours.
btc daily chart
BTC’s breakdown from the bottom of the rectangle corresponds to the December 2020 lows and halted in the $18.9k-$19.2k range. Meanwhile, the bearish mark reiterated the then sell-off gains.
However, over the past 40 days, King Coin has marked an up-channel (white) revival. An ROI of around 32% during this phase has helped BTC jump above its 20/50 EMA on the daily time frame.
At the time of writing, BTC was seeing an increase in buying volume as buyers were moving above the $23.8K range. Moreover, the 20 EMA and 50 EMA were on the verge of a bullish crossover. This crossover could pave the way for BTC’s continued growth.
An up-channel above the $24.6K resistance area of the coin could open a path towards the $25.9K resistance near the upper trendline. Moreover, the recent buying volume has crossed the near-term selling pressure. Any reversal from the upper trendline may continue to see a patterned momentum until the bulls break lower.
argument
The Relative Strength Index (RSI) is trending above its equilibrium, which is resonating with the bulls. A close above the 61.5-mark is now important to increase the chances of a sustained correction in the near term.
Interestingly, the OBV diverged sharply with the price after marking lower lows over the past few weeks. Additionally, the DMI lines revealed an increase in buying. However, ADX forecast a weak directional trend for the coin.
conclusion
Given the confluence of the up-channel lower trend line and the 20/50 EMA support, BTC could see a rally. The goal will remain what was discussed.
However, investors/traders should take into account the macro-economic factors influencing the broader sentiment. This analysis will help them increase their chances of a profitable bet.