- BTC stands much stronger at the end of the week
- BTC/USD climbed above the $23,000 resistance to move into a short-term bullish zone
- Bitcoin mining difficulty increased by 1.74% on Thursday
The recent crypto market’s recovery offers Bitcoin investors an opportunity to profit and break even on their initial investment. It also allowed long-term holders to add more to their positions. Overall, the price of Bitcoin continues to struggle with the bearish sentiment. However, BTC/USD has remained in another upside move past $22,000. Analysts expected a slowdown in the bullish rebound but got a big surprise as BTC stands much stronger at the end of the week and thus defies signs that the crypto market recovery is losing steam. Bitcoin’s decline towards the upper end of the downtrend channel has come to a halt above $22,000. During the session, BTC/USD climbed above the $23,000 resistance to move into a short-term bullish zone. Also, BTC/USD added nearly 3% to hit a $23,478 daily high in the past 24 hours, although with worryingly weak results. According to BTC.com data, Bitcoin mining difficulty increased by 1.74% on Thursday, following three consecutive declines in previous adjustments. The difficulty level, which is adjusted every two weeks, fell the most in a year during the most recent adjustment on July 22.
Resistance Levels: $30,000, $28,000, $25,000
Support Levels: $22,000, $20,000, $17,000
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
On the daily chart, BTC/USD turned to the sidelines immediately after charting a new lower bottom at $17,567. The technical indicators indicate a bearish-to-neutral bias, as the relative strength index (RSI) continues to flatten below its 60 neutral points and the moving average (MA 50) extends beneath the price as the next line of support.
As a result, traders may continue to steer the market sideways unless they witness a break above the moving average (MA 200) at $33,500, as well as closing above its restrictive zone of $35,000. If sellers retake control, initial restrictions may appear around the $22,000 level. A successful step lower might then stall around the psychological $20,000 support, a break of which could re-test the annual low of $17,567.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
BTC/USD continues its rally on the 4-hour chart below the $24,700 short-term barrier. A negative RSI divergence indicated that the rise was already slowing down. A subsequent breach below $22,000 will weigh on short-term optimism. Between $20,000–21,000 is a stronghold for buyers, and a break lower might ignite a liquidation towards $19,000. The nearest barrier is $25,000, and the bulls must break through it before the surge can resume.
The next key resistance level is near $23,500, beyond which the pair may move higher. In the aforementioned scenario, the pair could increase in the near term towards the $25,000 resistance zone. In contrast, the BTC/USD pair may begin a new drop below the $22,000 support level. The first significant support is located near the $21,000 level. Any further losses might push the pair below $20,000.
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