Bitcoin (BTC) is trying to reclaim its $2 trillion market cap as bullish momentum builds. Recent technical indicators, such as the DMI and RSI, suggest that the uptrend is gaining strength but also highlight the need for continued buying activity to maintain upward pressure.
Meanwhile, BTC’s EMA lines are suggesting a possible golden cross, which could push the price to test critical resistance levels near $98,870 and beyond. However, failure to break these levels could lead to a pullback, with key support areas at $90,700 and $88,000 in focus.
Bitcoin DMI shows that the trend is bullish here:
Bitcoin’s DMI chart shows that its ADX is currently at 27.3, a significant increase from 13.6 three days ago. ADX, or Average Directional Index, measures the strength of a trend on a scale of 0 to 100, with values above 25 indicating a strong trend and values below 20 indicating weak or no momentum.
BTC's ADX crossing above 25 indicates that the uptrend has gained significant strength, reflecting increased market confidence in the current price trend.
Down slightly from 32.7 yesterday, and -DI at 11.9, down slightly from 13.1. This formation highlights that buying pressure is still much stronger than selling pressure, although the slight decline in +DI suggests some cooling in the bullish momentum.
In the short term, BTC price is likely to remain in an uptrend, but sustaining further gains may require renewed buying activity to keep +DI high and ADX on the rise.
Bitcoin RSI above 50 since January 1:
Bitcoin’s RSI is currently at 60.47, holding above the neutral 50 level since January 1. The Relative Strength Index (RSI) measures the speed and magnitude of price changes on a scale of 0 to 100, providing insights into overbought or oversold conditions.
Values above 70 typically indicate overbought conditions, indicating a possible pullback, while values below 30 indicate oversold conditions, often indicating a rebound.
The RSI recently reached 66.6 before calming down to its current level of 60.47. This decline reflects a moderation in buying pressure after a period of strong momentum.
While the RSI remains in a strongly bullish zone above 50, the pullback suggests that BTC price could consolidate or see limited upside unless fresh buying activity emerges to push the RSI closer to the overbought zone. This current level provides scope for moderate price gains while keeping the risk of overextension in check.
Bitcoin needs to break these resistances to rise to $110,000:
Bitcoin’s EMA lines are showing signs of a potential strong uptrend as the short-term EMA crosses above the longer-term ones. This bullish crossover often signals an increase in momentum, which could push Bitcoin’s price to test the resistance at $98,870.
A successful break above this level could pave the way for additional gains, possibly reaching $102,590 and even testing $110,000 for the first time, depending on the strength of the trend. This would happen days after Bitcoin celebrates its 16th birthday.
However, if BTC price fails to break above the resistance and the trend reverses, it could face downward pressure. In this scenario, BTC could retest the $90,700 support level, with a break below this level opening the possibility of further declines to $88,000.