Bitcoin (BTC) faces rejection near 100 EMA again!
If there is a king in cryptocurrencies, it would only be Bitcoin. Despite the ups and downs of market sentiment and global concerns regarding the energy consumption of the validation process of Proof of Work used by Bitcoin, the token hasn’t yet found a true competitor even to this date.
Bitcoin is a rather stabilized cryptocurrency with deeply established roots in the industry. The market capitalization for BTC has almost reached $400 billion, which isn’t a small number.
Having no competitor isn’t the only advantage of Bitcoin; rather, it is perceived as the image of crypto markets has worked wonders for Bitcoin in its growth trajectory.
Bitcoin price action has been attempting to breach the 100 EMA curve for the last few months, but failure to do so is increasing the selling pressure for Bitcoin. The buying sentiment at current levels is more inclined to create a better scenario for profit booking.
Bitcoin’s consolidative stance makes it more complicated for enthusiastic buyers to take new positions. At the same time, it is making the selling of BTC even more challenging as the expectations from the coin have risen to new highs after the sudden pumping of some cryptocurrencies.
Just looking at the volumetric transactions data, we can ascertain a steady rise in volumes, which indicates more interest in the trading of BTC as compared to the sentiment a month ago. From technical indicators such as RSI, the level was almost close to 70 but has recently retraced a bit lower levels since the price action is steadily facing resistance from the 100 EMA curve.
Another technical indicator, the MACD, has marked a bullish crossover from the negative zones showcasing uptrend possibilities in the coming days. Currently, the 100 EMA for BTC is trading at around $21,189, and the 200 EMA is active at $25,255. Hence, the possible breakout levels are already available to the buyers.
On weekly charts, Bitcoin shows a breakout in emergence. The resistance of $22,806 would be a tough nut to crack, but the support from $18,599 is visible. The rebound from under $19,000 has become a common instance, thus confirming the upside swing of Bitcoin from these buying levels.
Any buyers hoping for a further dip in BTC could be disappointed since the buying opportunity for Bitcoin might not showcase similar levels again. RSI on weekly charts is showing an uptrend, but MACD is still reeling from previous profit-booking trades and frequent sell-offs. The outlook for Bitcoin can be predicted better after it surpasses the important moving averages on daily charts or at least trades above $23,000.