Disclaimer: The following analysis is the sole opinion of the author and should not be considered investment advice.
- Bitcoin has posted a strong close above the short-term EMA to reveal a bullish trend.
- Bitcoin inflows continue to show a downward trend.
bitcoin [BTC] The recent rally has placed the cryptocurrency above the 20 EMA (red) and 50 EMA (cyan), revealing a short-term buying edge. Since reversing the long-term trendline resistance to support (white, dashed line), BTC has been consistently rising.
Click here for AMBCrypto Bitcoin price prediction [BTC] 2023-24
The recently discovered buying pressure has witnessed a bearish counter at the $20.8K resistance.As the 20/50 EMA continues to point north, buyers will look to maintain their advantage in the next session.
At the time of writing, BTC was trading at $20,777.59, up 2.77% over the past 24 hours.
Can BTC’s rebound break through immediate resistance barriers?
At the time of writing, King Coin has found a convincing close above the 20/50 EMA. In doing so, the bulls attempted to challenge the $20.8K wall limit.
In this case, BTC’s first major resistance level would be in the $21.7k area. The coin finally entered a high volatility phase after weeks of compression. A reversal from the $20.8K mark could delay the outlook for a recovery by a few days.
A quick pull could find evidence of a credible rebound in the $19.8K to $20.3K range. A bullish cross at the 20/50 EMA increases the likelihood of a continuation of the bull market.
The Relative Strength Index (RSI) has witnessed growth as it looks to overbought territory at the time of writing. However, a low peak in the Chaikin Money Flow (CMF) suggests a bearish divergence with the price. A break below the zero mark could invalidate the bullish trend.
Decrease in foreign exchange inflows
After hitting record inflows in September, the metric has been on a consistent downward trend over the past six weeks. The reading was accompanied by improved investor sentiment, hinting at signs of accumulation.
Nevertheless, the goals remain the same as those discussed. Investors/traders should also take into account macroeconomic factors that influence broader sentiment. This analysis will help you increase your chances of making a profitable bet.