Bitcoin thrilled a lot of traders who were expecting massive price rallies after the apex coin failed to record any notable increases during the last three months of the previous year. January seems to be the answer to their request as BTC is reclaiming key levels.
The latest mark it surged above is the $22k resistance. It’s worth noting that this is the first time since September the coin is seeing such an increase and attempting the highlighted level. Switching the chart to a lesser timeframe, we noticed that the flip barely took an hour.
It happened during the past hour as BTC regained built momentum at $21,500 before the most recent feat. The latest development barely two days after the asset broke out of its bear flag. It dipped and lost a few percent, which led to more uncertainty in price.
The most recent milestone is yet another to the bears. Nonetheless, indicators are blaring warnings. One such is the Relative Strength Index.
Bitcoin Remains Overbought
For the first time in almost a year, bitcoin’s RSI is spending more than six days above 70. It started this action last week Wednesday as it experienced one of its biggest surges. Since then, it’s been above it. BTC showed signs of dropping two days ago due to the downtrend.
Trading action over the last 4o hours improved and the metric is back above 80. While this shows an increase in buying volume, it is also important to bear in mind the rules of the Relative Strength Index. On the other hand, the Moving Average Convergence Divergence is still on an uptrend.
Both the 12-EMA and the 26-EMA are above zero which is an indication of the bullish trend in the market at this time. The Moving Averages are also giving bullish signs as well. We noticed that the 200-day MA is arched upward with the 50-day MA gradually dipping. If this continues, we may expect a golden cross.
A look at the derivatives shows a decrease in short positions. The total funds traders lost over the last 24 hours exceeded $220 million with the bear seeing the most liquidations.
The 1-hour chart indicates that bitcoin could see more uptrend before the day ends. Let’s see how prices play out.
