Bitcoin Bulls Make a Comeback Amid Market Slowdown
After a bearish start to the day, Bitcoin (BTC) bulls joined the market after support at $22,198.98 was established. The bullish intervention caused the BTC price to rise to $22,613.69 during the trading day. At the time of writing, BTC/USD was trading at $22,460.26, a gain of 0.44% from its previous intra-day low.
Although 24-hour trading volume decreased by 7.5% to $13,550,265,768 during the downturn, the market capitalization increased by 0.42 % to $433,657,983,794. This action indicates that investors remain positive on the market despite the recent drop and are making strategic purchases at more attractive pricing. The drop in trading volume, on the other hand, might suggest a brief slowdown in market activity as traders take a step back to review their holdings.
BTC/USD 24-hour price chart (source: CoinMarketCap)
Bollinger bands are moving linearly, with the upper band reaching $22449.42 and the lower band touching $22269.10 on the 3-hour price chart for Bitcoin. This linear pattern shows that the market’s bullish momentum is strengthening and that a price breakout to the upside is more likely.
With the development of a green candlestick and the continuation of price movement upward, traders may consider starting long positions and positioning stop losses to close below the lower band to control their losses.
According to the Bull Bear Power (BBP) indicator, the BTC/USD pair is bullish with a rating of 62.96, suggesting that going long on the pair might be rewarding. This belief stems from the present market’s trend indicating that purchasing may be stronger than selling, perhaps resulting in a rise in BTC/USD values.
With a rising rating of 65.12, the Money Flow Index (MFI) supports this positive picture by suggesting that capital is pouring into the BTC market, which may lead to more demand.
While Bitcoin’s supply is finite, and its price is now rising due to demand, this trend may continue. Despite this, traders and investors should keep a close watch on any unexpected price drops, which may signal profit-taking or a shift in outlook.
BTC/USD 3-hour price chart (source: TradinView)
In the BTC price chart, the Aroon up reads 64.29%, and the Aroon down reads 57.14%, indicating that the current bullish trend will likely continue in the near term. But, traders should keep an eye on the Aroon down, as a dip below 50% might suggest a potential change in trend direction.
A difference in the Aroon up and down readings of less than 30 may also suggest a weak trend, and traders may prefer to wait for stronger indications before making trading decisions.
With a Fisher Transform rating of 1.38, traders may consider this a bullish signal and search for chances to start long positions. Nevertheless, if the Aroon up and down readings diverge by more than 30, this might indicate a stronger trend, and traders should consider taking action sooner rather than later.
When the True Strength Index (TSI) is trending downward with a value of -32.7226 and is going over its signal line, “Traders may interpret this as a bullish divergence and predict a trend reversal. When the TSI falls below its signal line, however, it may signify a continuation of the trend or at least a change in direction.”
BTC/USD 3-hour price chart (source: TradingView)
Bitcoin bounced back after support at $22,198.98 was established, with bullish momentum strengthening and a potential price breakout to the upside.
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