- To confirm a bullish breakout, Bitcoin needs to close above $27,640 on the 4-hour chart.
- The current range of Bitcoin price is between $27,640 and $26,340 on the 4-hour chart.
- A sustained close outside this area will determine the direction of the Bitcoin trend
Bitcoin is currently trading between $27,640 and $26,340 on the 4-hour chart. To determine the direction of the trend, traders are awaiting a sustained close outside this area with Bitcoin needing to print a 4-hour candlestick above $27,640 for a bullish breakout to be confirmed. The TD Sequential indicator points to a no-trade zone at the moment.
— Ali (@ali_charts) May 23, 2023
Bitcoin Price/Technical Analysis
The latest Bitcoin price analysis shows a bullish market sentiment with BTC retracing above the $27k mark. BTC opened today’s session below the $27k mark before the bulls pushed the price above this level. The move was also backed by strong buying pressure which saw BTC surge to $27,304 up by 1.62% as of writing time.
However, BTC has faced resistance at the $27,434 level with the current support level at the $26,714 level. The buyers need to hold above the $27k level to maintain a bullish trend. A break below the support level could see BTC correct lower in the short term.
The market capitalization for Bitcoin is $529,220,371,747 showing a gain of 1.62% in the last 24 hours while the trading volume is $13,906,200,602. The trading volume has shown significant activity in BTC’s market as it displays an increase of 38.59% in the past 24 hours.
Technical indicators on the daily chart suggest that BTC is currently in an uptrend trading pattern. The MACD is signaling bullish momentum as it is on the verge of entering a bullish crossover with the histogram turning from the negative to positive region.
The Relative Strength Index (RSI) is currently at 47.11 index sloping upwards showing a trend of increasing prices. This points to bullish momentum in Bitcoin’s price. The Money Flow Index (MFI) is at 38.81 indexes signaling that the buying pressure has increased over the past few days.
On the hourly chart, BTC is displaying a bullish bias too. The Moving Average Convergence Divergence (MACD) indicator has entered a bullish crossover with the histogram printing green bars. The RSI is at 61.68 index sloping upwards showing that buyers may have the upper hand in the short term. The Money Flow Index (MFI) shows a reading of 59.69 indexes indicating that the demand is increasing.
Overall, BTC is trading on bullish market sentiment as the buyers need to hold above the $27,000 level. A break below this area could see BTC retest the current support level. The buyers need to take out the $27,434 level for a bullish breakout to continue.
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.