Bitcoin saw a massive drop from the $30,000 level to $20,000 in June. Bitcoin price saw movement in the range of $20,000 and $21,000, respectively. The short-term technical outlook for the currency is to the upside.
However, it is too early to regard the bullish price trend as a comfortable recovery. If BTC can stay afloat above the $21,000 price mark, the coin could target the next price barrier. Buyers showed optimism on the chart and as a result, the currency price showed a respite.
Bitcoin has seen overbought conditions over the past 48 hours which indicates a bullish outlook on the chart. With the buying power still going, BTC may be able to target $24,000, but the chances of a bullish pullback cannot be ruled out.
Bitcoin Price Analysis: Four Hour Chart
BTC is trading at $21,600 at the time of writing. The coin crossed the $20,000 mark and managed to rally as shown in the above chart.
If the cryptocurrency shows a bounce from the consolidation phase, its immediate resistance is $24,000.
A dip from the current price level once again will pull BTC back to $20,000 which could trigger a crash to the $16,000 support level. With the demand for BTC growing, the coin managed to secure a 4% gain overnight.
The amount of BTC that was traded decreased in the previous session, which indicates that selling pressure has waned on the chart. This was a positive sign for Bitcoin.
Bitcoin buyers are back in the market, as $21,000 is an important demand area for the coin. BTC has recorded overbought conditions over the past two days.
Accordingly, the RSI was above 60 marks which indicates significant buying power in the market.
Bitcoin was also above the 20-SMA line which means that buyers were driving the price momentum in the market. The coin was above the 50-SMA which indicates positive price momentum.
Bitcoin in the short term is flashing signs of heavy accumulation. This correlates with an increase in buying volume over the past 48 hours and can be considered bullish for the asset. Chaikin money flow, which refers to capital inflows and outflows, painted a positive picture.
CMF is up and away from half of the line indicating growth in capital inflows. The Awesome Oscillator was above half of the line, and the indicator is responsible for depicting the direction of the market.
A reading above the half line means that bullish forces are present in the market, however, with the bars turning red, there may be opportunities for a price pullback. If demand remains stable, bitcoin could break above its current price level and trade near immediate price resistance.
Related reading | Why Bitcoin must meet these conditions if it wants to stay above $20k
Featured image from UnSplash, charts from TradingView.com