Based on the charts and indicators on the H4 time frame, we can draw some conclusions about the trend of Bitcoin (BTC) as follows:
1. EMA (Moving Average):
• The EMA 7, EMA 25 and EMA 99 lines show a clear bullish trend, as the EMA 7 and EMA 25 are above the EMA 99, indicating that the current bullish momentum is quite strong.
• The current BTC price is above the EMA lines, indicating a signal of short-term bullish trend continuation.
2. MACD:
• The MACD indicator with the DIF line above the DEA line and a widening gap indicates a strong uptrend. When the MACD histogram is at a positive high, the bullish momentum is still there.
• However, if the MACD starts to show signs of falling, caution is needed as this could signal a correction.
3. RSI (Relative Strength Index):
• RSI(6) is 78.82, RSI(12) is 76.93 and RSI(24) is 75.70, all above 70, indicating that BTC is in overbought territory. This could signal that BTC is likely to correct in the near future due to profit-taking pressure.
• A high RSI could be a warning sign of a short-term correction, but if it remains steady above 70, the uptrend could continue.
4. KDJ (Stochastic):
• The KDJ indicator shows that the %K, %D and %J are all in high territory (around 80-90), which usually indicates overbought conditions. When %J goes far beyond the remaining lines, this could signal a possible short-term correction.
5. OBV (On-Balance Volume):
• Steady increase in OBV shows that cash flow into the market is still quite strong, supporting the uptrend.
6. Stochastic RSI:
• Stochastic RSI is also at high levels, which further emphasizes the possibility that BTC price could correct as buying momentum begins to decline.
7. Trading volume:
• Volume is increasing strongly in green candles, showing strong buying interest. However, if volume decreases while price is still rising, this could be a signal of weakening trend.
Short term forecast:
• BTC is likely to maintain its uptrend as indicators still show strong buying momentum. However, as it is in overbought territory according to RSI, KDJ and Stochastic RSI, there may be a short-term correction. If BTC continues to hold above the EMAs, the uptrend remains intact.
• If BTC encounters strong resistance around the $93,000-$94,000 price zone, there is a possibility of a correction to the EMA 7 or EMA 25 support zone before continuing to increase.
Recommendation:
• Be cautious with the possibility of a short-term correction and watch for price reaction at EMA support levels or nearest technical support levels.
• If RSI and other indicators drop into neutral or oversold territory, this could be a potential entry point for investors looking to catch the next bullish wave.