Bitcoin continues to develop a bullish case as it approaches breaking an important resistance level that could be the first step toward establishing its next major trend.
Bitcoin is the world’s largest cryptocurrency by market cap and remains a favored option among many investors because of its ability to act as a store of value and for facilitating and receiving decentralized transaction activities. At press time, the coin is trading at $77,097 with an increase of 0.99% over the past 24 hours.
Chart Analysis Signals Gradual Strength
Currently, TradingView’s chart reveals an area of slow upward movement in BTC as it ranges between several resistance and support levels following the recent bearish period that ended at approximately $68.0k.
As a result of this movement, the price of Bitcoin has now increased above $72.4k, which is confirmed by the previously established resistance and now acting as a support level, indicating that this price is stable. The candlestick patterns are also reflecting a series of higher lows signalling a consistent and gradual bullish market trend.
The relative strength index (RSI) is currently close to 60, which indicates that buying momentum is moderate, and therefore, Bitcoin is not currently considered overbought or oversold. Additionally, the On-Balance Volume (OBV) indicator shows very slight upward movement, indicating that accumulation of Bitcoin has occurred and, therefore, suggests continued accumulation
Overall, BTC’s technicals appear to be conducive for an eventual attempt at breaking through the 80K level, and the price has not yet established the necessary confirmation needed.
Also Read: Bitcoin (BTC) Under Pressure as Whale Opens $26M Short
STH Realized Price Defines Key Resistance
Ali Charts mentions on Twitter that the STH realized price just below $79.3k is a significant level for BTC. Historically speaking, whenever Bitcoin trades under the STH realized price, the overall market is in a corrective phase, and once Bitcoin reclaims the STH realized price, it may begin a significant new price trend.
At this time, BTC continues under this level, so many of the holders in the short run are basically still at break-even. If BTC can close above $80,000 on a sustained basis, this has the potential to change how short-term holders feel about holding their Bitcoin and possibly lead to additional accumulation.
If BTC fails to break above this level, then there is a good chance for selling pressure, which may drive BTC down into the $65,000 area.
The current price of Bitcoin is at a key level; therefore, additional confirmation is required due to the overall uncertainty in the current market.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
