After a positive start to the day, bulls in the Bitcoin (BTC) market retraced after encountering tough resistance around the intraday high of $24,990.17. As a consequence of the bulls’ retreat, the BTC price fell by 1.88% to $24,440.84. This dip was shocking since many analysts projected that the bulls would break out and surge beyond the $25,000 level. As a result, many investors take a wait-and-see strategy in the Bitcoin market, wondering which direction the price will move next.
Consequently, the market capitalization and 24-hour trading volume fell by 2.03% and 1,56%, respectively, to $470,866,587,633 and $40,413,190,307. Despite the modest retreat, the general trend of BTC price remains favorable, with the BTC market retaining its ground. Investors seem to be bullish on the cryptocurrency’s future, and many have adopted a “buy-on-dips” approach, believing it is undervalued.
BTC/USD 24-hour price chart (source: CoinMarketCap)
The Keltner Channel bands rise on the 4-hour price chart, with the upper band at $24584.40 and the lower band at $22615.23, indicating a $1973.17 range, up from $1595.02 and the most fantastic intra-day range this week. This rise suggests the market’s increasing volatility, as traders are likely seeking fresh possibilities to profit from short-term and long-term profits in the present market.
With the possibility of the present market circumstances, traders have been more eager to take on greater-risk transactions in quest of better gains as the range has extended over the week.
The Money Flow Index (MFI) score of 72.76 reflects this rising volatility since higher readings suggest a rise in the number and intensity of trade signals. Because of the expanded range and Money Flow Index, traders have been more active in seeking to profit from price changes in markets that have been more volatile in the recent week. Therefore, when the range and Money Flow Index climb, traders may be more likely to increase their exposure to capitalize on the possibilities of this highly volatile market situation.
But, with an RSI reading of 62.69, the risk of a retreat remains, as the RSI shows that the market may have overbought to profit from higher volatility. As a result, traders should keep in mind that a downturn remains a possibility despite high levels of volatility and Money Flow Index readings. Consequently, traders must be aware of the risk of a downturn and modify their holdings appropriately to optimize their possible profits.
BTC/USD 4-hour price chart (source: TradingView)
The Keltner Channel bands bulge on the 24-hour price chart, with the upper band at $24621.72 and the lower band at $20844.03. This bulge indicates a potential breakthrough for Bitcoin prices. While the price movement is advancing towards the upper band, the bullish momentum in the market will continue, as seen by the positive sentiment among investors. Given the market’s positive rate, investors remain confident that Bitcoin prices will rise.
Since the MFI score is 49.78, suggesting a lack of buying and selling pressure, Bitcoin prices may stay rangebound immediately, failing to break through the $24621.72 mark. Although the sentiment is positive, and there is a significant possibility of a breakthrough of the $24621.72 level, a lack of buying pressure, as shown by the MFI score, implies that prices may stay rangebound in the immediate term. But, if purchasing pressure increases, a breakthrough of the $24621.72 level is probable, which may lead to additional advances in Bitcoin prices.
At a value of 64.57, the RSI trend is above the signal, indicating intense purchasing pressure. With the RSI showing strong buying pressure and market sentiment generally favorable, Bitcoin prices might break clear of the $24621.72 level in the short term.
BTC/USD 24-hour price chart (source: TradingView)
According to technical indicators, bulls still have a chance for a rebound, even if the trend is now negative.
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