BIT Price Analysis: Bulls deny bears' dominance by forming a lower wick

The token is trading above the demand zone on the daily time frame.
The pair of BIT/USDT is trading at the price level of $0.4975 with a decrease of -2.94% in the past 24 hours.

The token’s long-term downtrend of price forming lower highs and lower lows came to an end with bulls taking control and reversing the trend in their favor. The bulls are holding strong, refusing to let the bears drive the token’s price down.

BIT token on the daily chart

After breaking out of the upward consolidation, the bulls gained traction, forming strong bullish candles on the daily time frame. According to the daily chart, BIT token is currently trading at $0.4975, indicating a loss of -2.94% in the last 24 hours. It is now trading between its main Moving Averages of 50 and 200 EMA. (Red line is 50 EMA and the blue line is 200 EMA). The big body of the candle formed a strong bearish candle, but the bulls refused to push down the token’s price and thus produced a lower wick on the candle.

Relative Strength Index: The asset’s RSI curve is currently trading at 50.57, just above the halfway point of the 50 point line. The recent drop in the token’s price has caused the RSI curve’s value to fall and cross the 14 SMA downward. If the bulls can continue their upward momentum, the value of the RSI curve will rise yet again.

Analyst view & Expectations

On the daily time frame, the token has formed a long lower wick at the 50 EMA and support level. This wick suggests that the bulls are strengthening their dominance over the bears. Investors are advised to buy once the token crosses and sustains above the 200 EMA on a daily time frame. Intraday traders, on the other hand, have a good opportunity to go long and book profits based on their risk to reward ratio.

According to our current BitDAO (BIT) price prediction, the value of BitDAO (BIT) is expected to climb by 22.17% in the next few days, reaching $ 0.61253. Our technical indicators indicate that the current sentiment is bearish, with the Fear & Greed Index reading 51. (Neutral). Over the previous 30 days, BitDAO had 18/30 (60%) green days and 14.37% price volatility. According to our BitDAO forecast, now is not the time to buy BitDAO.

Technical Levels

Major support: $0.4230

Major resistance: $0.5360 & $0.5820

Conclusion

The bears tried to lower the token’s price, but the bulls intervened, stopping the bears from doing so. However, this does not prove that the uptrend is continuing. Investors are advised to wait for a clear indication before acting.

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing