Home CryptocurrencyAnalysis Bitcoin Price Surpasses $22,000, But Can The Momentum Last?

Bitcoin Price Surpasses $22,000, But Can The Momentum Last?

by SuperiorInvest

Bitcoin price has shown strength over the past four days as it finally broke through the $19,000 price zone.

Bitcoin price has been consolidating over the last week before this rally. At the moment, the $18,000 price level acts as a strong support for the coin.

Although the price of Bitcoin has stabilized, the price range of $18,000-$19,000 remains critical.

If the cryptocurrency fails to trade above its current level and falls near $18,000, its next trading zone will be at $15,000. Buyers appear to have returned to the market for a relief rally.

Technical indicators also painted a bullish picture for Bitcoin on the daily chart. Bitcoin demand must remain constant for the coin to remain bullish on its daily chart.

The coin could reach $24,000. However, this price level may prove to be a strong barrier for Bitcoin.

This, in turn, could push the price of Bitcoin to the nearest support line. If Bitcoin manages to hold above $22,000, there is a chance that it could trade near $24,000.

Bitcoin Price Analysis: One Day Chart

On the one-day chart, Bitcoin was valued at $22,100 Source: BTCUSD on TradingView

BTC was trading at $22,100 at the time of writing. However, after a period of consolidation, there has been a relief rally in recent days.

The immediate resistance for the coin was $24,000, but the aforementioned level could prove to be a strong resistance mark for Bitcoin.

Local support for the coin was at $19,000 and then at $18,000. If Bitcoin reaches $18,000, it is possible that it will aim for $15,000.

The volume of Bitcoin traded fell in the last session, which was a sign of increased selling pressure.

Technical analysis

Bitcoin price
Bitcoin has seen increased buying power on the one-day chart | Source: BTCUSD on TradingView

BTC has been flashing signs of optimism over the past few days.

It remains to be seen how Bitcoin price moves above $22,000.

Bitcoin’s price outlook has turned positive, with buying power increasing over the past few trading sessions.

The relative strength index was above the halfway line, indicating that buyers outweighed sellers at the time of writing.

Bitcoin price crossed the 20-SMA, signaling that buyers were driving price momentum in the market.

Increased demand would push the 20-SMA series to cross the 50-SMA series, increasing the chance of an upside.

Bitcoin price
Bitcoin could be showing signs of price volatility as seen on the 1-day chart | Source: BTCUSD on TradingView

Other Bitcoin technical indicators also appeared to be bullish at press time. The overall price direction of the coin was positive as shown by the technical indicators.

The Directional Movement Index was positive, with the +DI line above the -DI line. However, the average directional index (red) fell slightly.

This meant that price dynamics could lose steam. Bollinger Bands indicate volatility, and a slight opening of the bands means that there could be price swings.

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