Bitcoin price analysis: Bulls hold on to crucial support of $16,000

Bitcoin price analysis shows the BTC/USD pair has experienced massive price fluctuations in the last few hours. The market has experienced massive price movements that have created several new intra-day highs and lows, but the bulls have managed to hold on to crucial support at $16,000. Recent data shows that the most influential crypto is still trading above its key support levels of $15,700 and $15,200.

Bitcoin is trading at $16,402.55, up by 1.57 percent in the last 24 hours. The total market capitalization of the coin is $25.3 billion and the trading volume has decreased by 26 percent. The main resistance for BTC/USD is seen at $16,500 and above that at $16,800. On the other hand, support lies at around $16,000 and below that at $15,700 and $15,200.

Bitcoin price analysis on a daily chart: Bulls sustain momentum

According to many investors and industry experts, a break above $16,500 could pave the way for bullish price action. On the other hand, failure to sustain momentum on a daily chart could see Bitcoin prices drift lower towards $15,200 or even further down to $14,000.

While there are still conflicting opinions surrounding the crypto market such as the ongoing FTX fallout and macro triggers. It seems that the smart money is in for a new uptrend and is poised to ride it to greater heights. Even fresh repercussions over the FTX debacle failed to dent Bitcoin’s performance.

Meanwhile, these came in the form of a bankruptcy filing and lawsuit from crypto lender BlockFi. The latter has been accused of poaching its employees to the tune of $7.5 million over a period of six months, according to media sources.

The trendline continues to be intact with Bitcoin prices holding on to above $16,000. The weekly chart shows Bitcoin bulls have managed to remain strong even after experiencing such severe volatility. The Relative Strength Index (RSI) indicates that the BTC/USD pair is in the bullish zone but is approaching overbought territory.

The Moving Average Convergence Divergence (MACD) on the daily chart shows a bullish cross and is increasing in value. The current market sentiment points towards another run towards $16,800 while traders wait for Bitcoin to clear $17,000 before they will consider entering long positions.

Bitcoin price analysis on a 4-hour chart: BTC price holds above $16,000

Bitcoin price analysis shows the BTC/USD pair price movement in the last 4 hours. The recent price action shows that Bitcoin is still holding on to the $16,000 support level. This is a positive sign for the bullish trend in the long-term as well as short-term traders.

The MACD indicator on the 4-hour chart indicates that Bitcoin is likely to move towards breaking above $16,800 and find resistance at $17,000 in the near term. The Relative Strength Index (RSI) is also pointing towards a bullish trend in Bitcoin prices and shows that the buying sentiment is strong.

The next target for BTC/USD traders could be at $20,000 while short-term support lies around $15,500. On the other hand, failure to hold on to $16,000 could see Bitcoin prices drop to around $15,200 and find support before moving higher.

Bitcoin price analysis Conclusion

Bitcoin price analysis shows the BTC/USD pair continues to be in strong bullish trend momentum. The bulls have been pushing higher despite the strong pullback that has seen Bitcoin drop to last week’s lows of $15,500.

Meanwhile, Bitcoin continues to show signs of weakness in the short term. With the recent fallout of a crypto lending firm, BlockFi has willingly filed a case in the US Bankruptcy Court for the District of New Jersey. BlockFi has listed FTX US as one of its top unsecured creditors, with a $275 million loan. The recent development could weaken the current bullish sentiment. It remains to be seen whether Bitcoin prices will recover or continue drifting lower toward $15,000 and then further towards $14,000.

While waiting for Bitcoin to move further, see our long-term price predictions on Chainlink, VeChain, and Axie Infinity.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.