Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin price is stuck below the short-term resistance zone plying between $22,000 and $23,000.
The most famous cryptocurrency trades with modest losses on Tuesday at $22,055, down 1.85% for the day. Bitcoin price is expected to consolidate in the range of $20,000 and $23,000. The downside is well guarded near $18,000 on the daily chart but the price looks for upside signal.
After a short-term consolidation that extends from Bitcoin gave a bullish breakout. The price retest of the resistance, which earlier acted as a resistance. The trading volume supported the breakout. An above-average volume upon the breakout candlestick indicates a bullish sign.
Investors focus now on one question, that is how long the price could leap from the current level. As the bulls manage the previous session’s low, Bitcoin can scale up to $23,300. This also coincides with the 50-day Exponential Moving Average (EMA).
If the price moves decisively above the mentioned moving average, the next target would be the high of 13-June at $26,951.
On the hourly chart, Bitcoin is trading in a rising channel, making higher highs and higher lows. Bitcoin price is currently trading at the channel’s lower trend line, which constitutes a double bottom structure. This is a classic upward trend formation.
The RSI (14) is trading and sustaining above the 50 level which indicates the continuation of the upside momentum.
On the other hand, a shift in the bullish sentiment could result in selling pressure from the higher levels. A daily candlestick below $21,590 would invalidate the bullish hypothesis.
Bitcoin looks mildly bullish on multiple time frames. The price could shoot up to 6% from the current levels. A long position could be initiated if the price closes above the session’s high of $22,958.
