By Franklin Smith
Bitcoin and most alts have experienced consistent declines that saw digital assets recording multi-yearly lows. BTC even hit $17K this month amid intensified bearishness.
Nevertheless, the leading crypto has climbed to reclaim the critical $20K mark. The past week had the crypto losing 22%. Nevertheless, improved sentiment triggered a nearly 7% increase in its daily chart.
Bitcoin’s technicals regained bullishness though still indicate weakness signals. Also, buyers rejoined the marketplace, but buying momentum fading again might send Bitcoin towards footholds at $17K. It remains challenging to say BTC has bottomed.
Most alts recorded upticks on their price charts as BTC reflected relief signals. For instance, Ethereum gained around 9% within the past day. The global crypto market capitalization hovered at $950 billion, reflecting a 6.1% surge over the past 24 hours.
Bitcoin 1 Day Timeframe
Bitcoin explored 18-month lows as the bellwether crypto navigated the $18K value area. Selling pressure has constantly pushed the token below. Though overnight sessions had Bitcoin jumping to secure the $20K support level, sellers still dominate the marketplace.
The immediate resistance to the upside is at $22K, whereas losing grounds at $20K will push Bitcoin towards $17K – $16K. Also, Bitcoin’s trading volume dropped on the price chart. The red bar suggested BTC is in bears’ hands.
Technical Analysis
Meanwhile, BTC displayed bullish signs on shorter timeframes. The RSI (Relative Strength Index) saw a sharp climb to 50, confirming buyers’ resurgence in the marketplace. Moreover, the RSI saw a minor downtick the past day, signifying a slight buying momentum drop.
Increasing buyers in the space pushed prices past the 20 Simple Moving Average. That showed buyers driving the market momentum. Nevertheless, amplified selling strength in the coming sessions would see BTC price plunging under the 20SMA, translating to sellers’ strength.
Meanwhile, the crypto created a descending channel setup. That is a bullish reversal setup, showing chances of BTC extending higher on the chart. Meanwhile, increased buying pressure is essential to sustain beyond the $20K level.
Bitcoin reflected optimism during this publication. The Awesome Oscillator indicated positive price movements. Meanwhile, AO detects price reversals and trends. It showed a green histogram, suggesting a buy sign.
Also, the Directional Movement Index indicated bullishness as the +DI stood beyond the –DI. Meanwhile, the ADX maintained downtrends, eyeing the 40-level. Losing this mark would mean losing upside strength, translating to BTC’s downtrends.