Recently, the cryptocurrency environment is abuzz with the lively chatter about Bitcoin’s (BTC) course of action. The fervor is further fueled when it came to light that the crypto had undergone a remarkable 8% rise, stimulating talks regarding the potential initiation of a fresh bull market. Trading at an impressive $28,000, Bitcoin’s 24-hour trading volume has also boosted 4% to reach $12 billion. Despite the crypto world’s fluctuations, Bitcoin remains steadfast, with its preeminence unchallenged at the peak of CoinMarketCap and a sterling market capitalization nearing $547 billion.
Nevertheless, Bitcoin enthusiasts be aware of the finite circulation of this digital coin. At present, we have close to 19,501,531 BTC in circulation, reaching steadily towards the predetermined limit of 21 million. How will this scarcity affect the coin’s future? Time alone can answer.
Delving into the key price levels on Bitcoin’s 4-hour chart, we can decipher certain worth noting points. The pivot point stands at $27,347, immediately followed by resistance levels at $28,706 and then higher up to $30,275. Bitcoin gains its instant buoyancy at $26,636, with additional layers of support poised at $26,000 and $25,325. Necessity to maintain these support levels is crucial to avoid any undesired negative spiral.
Evidence from technical indicators also has something to say about Bitcoin’s present condition. The Relative Strength Index (RSI) currently stands at 78, crossing the traditional 70 level, hinting at overbought market. This could very well signal a pullback in the near future. The Moving Average Convergence Divergence (MACD) at 124, against its signal line at 393, suggests a possible downward shift in momentum. All eyes remain on preserving the numbers above the 50-Day Exponential Moving Average (50 EMA) valued at $27,000.
The previous record of Bitcoin chart patterns indicates a possibly strong upward climb. Historically, such a surge usually continues for a period, which hints at the potential for Bitcoin to retain its upward momentum.
All accounted for, the Bitcoin route appears rather bullish. For investors, procuring above the $27,500 mark is seen as a strategy, anticipating $28,800 or even a $29,300 target. However, if Bitcoin struggles to hurdle the $28,300 barrier, that might trigger a selling trend. In the days ahead, as Bitcoin challenges the $28,800 resistance level, it could tantalizingly approach the $29,300 high if the market remains favourable.
Meanwhile, crypto enthusiasts, you should consider our list of the top 15 cryptocurrencies and ICO projects to watch in 2023. Stay updated about the world of digital assets with Cryptonews.com and don’t forget – cryptos are highly volatile investments with considerable risk, so do your research.
Source: Cryptonews
