29 February, 2024

Bitcoin Price Analysis:  BTC remains pressured below 21-day EMA; what’s next?

1 year ago

28 Nov, 2023

Cryptocurrency prices harness modest gains on Monday amid a trading holiday in the U.S. market.

  • Bitcoin price retraced with modest gains after initial gains on Monday.
  • Bears challenge the critical 21-day moving average on the daily chart.
  • A bearish momentum oscillator gives potential reversal from the current level.

Bitcoin price (BTC) started the new trading week on a higher note but could not defend the gains.  The price trades in a sideways movement below $16,900. Trading holidays in the major market kept the gains limited in the most prominent cryptocurrency.

 As of writing, BTC/USD is exchanging hands at $16,800, up 0.2% for the day. The 24-hour trading volume jumped to $12,694,809,534 as per CoinMarketCap.

Bitcoin price trades near the critical resistance zone

On the daily chart, the Bitcoin price formed multiple Doji formations near $16,800. The price retreated after testing the high of $16,914.42. The formation of the ‘Hammer’ candlestick in the previous trading session resulted in the recent price action.

Currently, the bulls attempts a recovery toward $17,000 amid the formation of the bullish candlestick pattern. Traders continue to face challenges near the $16,920 level for the past few sessions. If the BTC price closes above the mentioned level on the daily time frame, then there is a higher chance it could retest $17,200.

 Further, sustained buying pressure could see more gains toward $17,690.

 On the other hand, a shift in the bearish sentiment, and if the price stays below $16,800 for a longer period then bears would have more chances to take over the trade.

On moving lower, the Bitcoin price could test the $16,600 level. Next market participant could test the low of December 19 around $16,300.

Technical indicators:

RSI: The daily RSI reads at 47 with a neutral bias. Any downtick in the oscillator would support the downside momentum in the price.

MACD: The indicator oscillates near the central line with a bearish crossover, signaling the presence of sellers.

Conclusion: Bitcoin price trades in a predefined range of $16,900 and $16,600 in the short term. A breakdown of the range would dictate the next directional setup.


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