Bitcoin is likely to rally towards the $22k resistance level in the coming hours as the broader market slowly recovers.
After a slow start to the week, the cryptocurrency market is slowly recovering today. After losing over 3% of its value on Monday, the crypto market is up almost 2% in the past 24 hours.
The positive performance has again pushed the total cryptocurrency market cap above the $1 trillion mark.
Bitcoin fell below the $21k support level around Monday but has maintained its value above that range. Bitcoin is now trading around $21,400 per coin and could make a move towards the $22k resistance level in the next few hours if the market momentum is maintained.
Bitcoin reaching the psychological level of $25k in the near term will depend on sentiment in the broader cryptocurrency market.
prime level to watch
The BTC/USD 4-hours chart remains bearish despite a 1% increase in bitcoin price over the past 24 hours. Technical indicators suggest that the performance of Bitcoin is improving, but it is still not bullish.
The MACD line fell into the negative zone on 16 August and remains there. Thus, it shows that the bearish trend is not over for Bitcoin yet.
The 14-day relative strength index of 44 shows that bitcoin is no longer in oversold territory. However, it is still some way from entering the overbought area of the chart.
As of press time, BTC is trading at $21,360 per coin. If the market correction continues, BTC is likely to cross the $22,724 resistance area in the coming hours or days.
However, bitcoin may find it difficult to reach the second key resistance level of $23,960 in the near term unless there is some bullish momentum.
The bears are still lurking and may gain control of the market. Doing so would see BTC fall below the $21k support for the second time in less than a week.
Bitcoin has maintained its value above $20k and should comfortably do so in the coming days.