Bitcoin eyes the $22k resistance level as the market slowly recovers
Bitcoin could rally towards the $22k resistance level over the coming hours as the broader market slowly recovers.
The cryptocurrency market is slowly recovering today, following a slow start to the week. After losing more than 3% of its value on Monday, the crypto market is up by nearly 2% in the last 24 hours.
The positive performance has pushed the total cryptocurrency market cap above the $1 trillion mark again.
Bitcoin nearly dropped below the $21k support level on Monday but has maintained its value above that threshold. Bitcoin is now trading around $21,400 per coin and could make a move for the $22k resistance level over the next few hours if the market momentum is maintained.
Bitcoin reaching the $25k psychological level in the near term would depend on the sentiment in the broader cryptocurrency market.
Key levels to watch
The BTC/USD 4-hour chart remains bearish despite Bitcoin adding 1% to its value in the last 24 hours. The technical indicators show that Bitcoin’s performance is improving, but it is yet to be bullish.
The MACD line dropped into the negative zone on August 16 and has remained there. Thus, indicating that the bearish trend for Bitcoin is not yet over.
The 14-day relative strength index of 44 shows that Bitcoin is no longer in the oversold region. However, it is still some way from entering the overbought zone of the chart.
At press time, BTC is trading at $21,360 per coin. If the market recovery continues, BTC could surpass the $22,724 resistance level over the next few hours or days.
However, Bitcoin could find it hard to reach the second major resistance level at $23,960 in the near term unless there is a bullish movement.
The bears are still lurking and could regain control of the market. Doing so would see BTC fall below the $21k support level for the second time in less than a week.
Bitcoin has maintained its value above $20k and should comfortably do so over the next few days.
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