Bitcoin (BTC) is showing strong bullish momentum with its ADX at 27.3%, indicating that buying pressure is more dominant than selling. However, despite a slight cooling in momentum, the rally continues. The RSI remains above 50%, indicating that bullish sentiment remains, but additional buying is needed for the price to rise further.
The golden intersection of the EMA lines is a candidate to carry Bitcoin to $98,870. If this resistance is overcome, the next targets could go up to $102,590 and $110,000. Bitcoin (BTC) is trying to regain its $2 trillion market value by increasing its upward momentum. Recent technical indicators, such as the DMI and RSI, show that the current uptrend is gaining strength, but it is emphasized that continuous buying support is needed to maintain upward pressure.
Bitcoin DMI: Uptrend Strengthens
The DMI indicator for Bitcoin indicates that the ADX is currently at 27.3, a significant increase from 13.6 three days ago. The ADX evaluates the strength of a trend on a scale of 0 to 100, with values above 25 indicating a strong trend, while values below 20 indicate weak momentum. With BTC’s ADX above 25, it is observed that the uptrend is getting stronger and market confidence is increasing.
Directional indicators show +DI at 27.8 and -DI at 11.9. This suggests that buying pressure is significantly stronger than selling pressure. However, a small drop in +DI could signal a slowdown in bullish momentum. In the short term, BTC’s price is likely to remain in an uptrend, but further buying may be necessary to keep +DI high and push ADX higher for further gains to be made.
RSI: Bullish Mood Remains
Bitcoin’s RSI is currently at 60.47, remaining above the neutral 50 level since January 1. The RSI measures the speed and magnitude of price movements, providing information about overbought or oversold conditions. Typically, RSI values above 70 indicate overbought conditions and signal a potential pullback, while values below 30 indicate oversold conditions and could signal a recovery.
Bitcoin’s RSI recently showed strong momentum by reaching 66.6, but has now pulled back to 60.47. This decline reflects a decrease that came after strong buying pressure. The RSI is still above 50, suggesting it is in strong bullish territory. However, unless new buying activity emerges, it may be difficult to push the RSI into overbought territory.
Bitcoin Price Prediction: Breaking Through Resistances Is Critical
There is a potential golden crossover forming in Bitcoin’s EMA lines. This could indicate that BTC could enter a strong uptrend in the short term and could push the price to test the critical resistance level at $98,870. Breaking this level could open the way for more gains. In the event of a successful breakout, Bitcoin could potentially rally to $102,590 or even $110,000. This could happen just after Bitcoin’s 16th birthday.
However, if the price fails to hold these levels and the resistance is not broken, a pullback is possible. In this case, BTC could retest the $90,700 support level. If this level is broken, further declines to $88,000 are possible. This scenario requires traders to be careful of potential declines as well as upward movements.