Bitcoin Technical Analysis: BTC Reclaims $41K Mark Following Short-Term Consolidation
At present, the price of bitcoin is $41,106, marking a significant climb from its 24-hour low of $39,538 and peaking at $41,474. This upward movement signifies a 3% gain within the last day, reflecting a surge of optimistic sentiment among investors in the short term. Yet, when expanding the view to include a broader timeframe, the picture shifts: there’s a marginal 0.5% decrease over the previous week, a more pronounced 10% fall in the past fortnight, and an aggregate drop of 4.3% since the preceding month.
As of Friday, bitcoin’s market capitalization stands impressively at $806 billion, bolstered by a vigorous 24-hour trading volume of $21.44 billion. A glance at the 1-hour chart reveals bitcoin’s recent upward trajectory, marked by significant price increases underpinned by strong trading volume, vital for maintaining this upward trend.
However, recent declines hint at a moderate retraction from its highest point, likely a standard correction after a steep rise. The 4-hour chart offers a broader view, depicting a stagnant market pattern before the rally, indicative of horizontal trading. The ensuing sharp increase in price, coupled with a noticeable rise in volume, indicates a powerful market movement with the potential for further development, although a slight pullback is currently evident.
On the daily chart, the wider market mood is discernible. Prior to the latest price activity, bitcoin experienced a downward trend and then entered a consolidation phase. The escape from this phase was characterized by a substantial jump but was soon followed by a decline, suggesting persistent selling pressure.
Current oscillators shed light on BTC’s market dynamics. The relative strength index (RSI) is at 45, suggesting a neutral market. The Stochastic and commodity channel index (CCI) reinforce this neutral position, showing values of 28 and -69, respectively. Meanwhile, the momentum indicator indicates positive market sentiment at -2001, while the current moving average convergence/divergence (MACD) level at -807 points towards bearish tendencies, presenting a market with conflicting dynamics.
The moving averages (MAs) provide a varied outlook. Short-term exponential moving averages (EMAs) and simple moving averages (SMAs) for 10 days reflect a positive trend, mirroring the recent upward shifts. In contrast, the 20, 30, and 50-day EMAs and SMAs suggest a bearish trend, underscoring the downturns in these periods. However, the longer-term 100 and 200-day EMAs and SMAs lean towards bullish territory, indicating a fundamental strength in the market.
From a bullish perspective, bitcoin’s recent price action, characterized by a 3% rise in the last 24 hours and a strong rebound from its 24-hour low, demonstrates a resilient market presence. The substantial trade volume and a robust market capitalization of $806 billion further reinforce the underlying strength of bitcoin’s market standings. The short-term bullish signals in moving averages and positive momentum indicators suggest the potential for further upward movement.
On the bearish side, bitcoin’s performance over broader time frames cannot be overlooked. The 0.5% decline over the past week, coupled with a 10% drop in the last two weeks and a 4.3% decrease since last month, paints a picture of lingering uncertainty and potential downward pressure. The mixed signals from oscillators and the negative indications in longer-term moving averages suggest a cautious approach.
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