Bitcoin price seems to be in the control of bulls as the cryptocurrency rallies. Over the past 24 hours, BTC has gained over 7% on its chart.
In the last week, the return of the cryptocurrency has been more than 8%. This has put Bitcoin in a bullish position as it crossed the $20,000 price mark.
Buyers are returning to the one-day chart as demand for the coin has increased significantly.
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The bulls may be eyeing the next major resistance at $22,000, but there are two other important levels that the coin must overcome.
If the buyers once again exit the market, then the chart will appear a pullback. This shift in Bitcoin’s bullish momentum has also fueled massive rallies for major altcoins in the market.
The immediate next trading sessions will prove to be crucial for the coin as they could determine the next strength of the bulls. A drop from the current price mark will bring BTC back to the $19,000 price zone.
Bitcoin Price Analysis: One-Day Chart
BTC is trading at $20,800 at press time. The coin was finally able to break through its lengthy consolidation phase.
Now that the range-bound movement of this coin is gone, there are key levels that the Bitcoin price must overcome to reach the $22,000 price point.
The immediate resistance for this coin is at $21,100 and the other is at $21,600. If the bulls lose momentum or in the event of a price drop, Bitcoin price will drop back to $19,700.
$19,600 still acts as strong support for the coin. The number of Bitcoins traded in the past session has increased, indicating a significant increase in purchasing power.
Technical analysis
Technical indicators are on the side of the bulls. The cryptocurrency is moving closer to the overvalued zone, as seen on the one-day chart.
The Relative Strength Index crossed the halfway mark and moved above the 60 mark, which is considered quite bullish for the coin.
With bullish momentum continuing, Bitcoin price could enter the overbought zone. A move into the overvalued and overbought zones can also trigger a price correction.
Bitcoin price is above the 20-SMA, which signals more demand and responsible buyers driving the price momentum.
BTC has shown that buyers are definitely gaining strength as it also depicts a buy signal on its chart.
The moving average divergence shows the overall price direction and strength of momentum.
MACD formed green signal bars, this is a buy signal and they are increasing in size, signaling bullish price action.
The Parabolic SAR also describes the trend and direction of the price. The dotted lines are below the price candlestick, which is a sign of positive price action.
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