Bitcoin and other major altcoins have been in free fall, even hitting multi-year lows. BTC even hit the $17,000 mark this month, however, the king coin has now recovered $20,000. In the last week, the coin has lost 22% in value but is up nearly 7% on the daily chart.
The technical outlook for the coin has been bullish but still reflects signs of weakness. Buyers have also returned to the market, but if purchasing power falls again, BTC could find support near $17,000. Whether the coin has bottomed is hard to say.
Many altcoins also jumped on their charts as Bitcoin showed signs of easing. This also includes Ethereum, which has gained 9% in the past 24 hours.Global cryptocurrency market cap today is $950 billion, growing 6.1% Changes in the past 24 hours.
Bitcoin Price Analysis: One Day Chart
BTC hit an 18-month low as the coin fell near $18,000 yesterday. Pressure from sellers keeps pushing prices down. Despite the jump back to the $20,000 support, sellers are still in control of the market.
The overhead resistance on the call is at $22,000, and a decline from $20,000 would result in BTC trading near the $17,000-$16,000 mark. BTC volume is also down on the charts. The bar is in red, which shows that Bitcoin is still in control of the bears.
On the smaller time frames, Bitcoin is showing bullish signals. The RSI rose sharply and hit the 50 line, which means buyers are back in the market. However, over the past 24 hours, the RSI has dipped, again indicating a small dip in purchasing power.
The price surpassed the 20-SMA line as the number of buyers increased. This means that buyers are driving price momentum in the market. An increase in selling pressure will soon push the price of BTC below the 20 SMA line, giving sellers the ability to push the price higher.
According to the bullish, the coin has formed a descending channel pattern (yellow). This pattern is a bullish reversal pattern that suggests BTC is likely to rise further on its charts. Buying power needs to increase for the price to stabilize above $20,000.
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At the time of writing, the coin is bullish on its chart. The awesome oscillator reflecting the same is also showing positive price action. AO determines price trends and reversals. The indicator shows a green histogram, which is also associated with a buy signal.
The Directional Movement Index indicates the directional price movement of the coin. +DI is above the -DI line, which means bullish. ADX (red) is falling and is approaching the 40 mark, a break below the 40 mark means that the current trend is losing its vitality and BTC may drop onto the charts again.
Related reading | Why Bitcoin could take another bite at $17,000