- Bitcoins saw a rebound from its short-term EMA to display a robust bullish inclination.
- BTC’s development activity and social dominance formed a downtrend.
Bitcoin’s current upside supported buyers to initiate a closing beyond its 20 and 50 Exponential Moving Averages on the 24hr chart. Meanwhile, buyers revived momentum after climbing beyond the longer-term trend-line support (previous resistance).
BTC’s price action dodged the high liquidity territory, breaking into high volatility following a bullish resurgence. While publishing this content, the leading crypto hovered near $21,363, gaining 3.51% within the past day.
Bitcoin Saw Patterned Breakout
Meanwhile, the bellwether crypto secured a dependable bounce-back from the 20 Exponential Moving Average support (during this writing). That had the bulls striving to challenge the shackles of $21.3K – $21.6K. Closing this mark might translate to extended upsides in the upcoming sessions.
Such scenarios would have BTC’s first massive resistance at $22.5K. The asset joined a high volatility period following stretched compression around the $19.1K value area. A reversal from the nearest resistance might delay short-term recovery predictions.
Meantime, immediate pulls might secure dependable rebounding levels from the 20 Exponential Moving Average at the $20.3K mark. Also, the 20-50 EMA bullish cross heightened the probability of bulls retaining their dominance over the marketplace.
The RSI (Relative Strength Index) grew, targeting the overbought territory at this publication. Nevertheless, the CMF’s (Chaikin Money Flow) failure to climb beyond d0.08 displayed a slight bearish divergence. A drop beneath the zero level might cancel the bullish inclinations.
Drop in Development Activity and Social Dominance
The development activity recorded consistent downside trends for around two months. That came after the metric retained somewhat high levels in September. Also, Bitcoin’s social dominance index mimicked a similar southbound path. Price following such tendencies would have sellers looking to halt the bullish moves.
Nevertheless, the targets would stay as mentioned. Also, Bitcoin enthusiasts should watch macroeconomic factors impacting the broad sentiment. Such an analysis will increase the probability of profitable bets.
What are your thoughts about Bitcoin’s current trajectory? Feel free to leave a reply in the section below.
