BTC Technical Analysis: Will Bitcoin Break Above $21,875?

A vertical rise in Bitcoin (BTC) price after rebounding from the $18,800 level suggests strong demand at this level. In addition, the coin price approaches a local resistance of $21800 barriers implying new breakthrough prospects for speculators. However, volume activity is yet to corroborate this idea, and a decline in value may prompt countermeasures.

Key Points:

Source - TradingView

BTC Technical Analysis

The current collapse in the crypto market entirely wipes the July-August profits and plunges the Bitcoin (BTC) price below the lowest support of $18750. As a result, the traders responded to this significant accumulation zone by instantly raising the price.

The restocked upside trend soared the price for four straight days, recording a 16% rise. The substantial volume activity increase throughout this rally enhances the buyers' interest in this discounted price.

The bullish movement wiped out a moderate barrier at $20750 and reached another at $21,875. The coin price presently struggles to exceed the resistance due to increased selling pressure leading to higher price rejection in the daily candle. However, even though there is no rejection candle and decreasing volume, the quick advance has drained the bullish impetus.

As a result, the Bitcoin (BTC) price may have a little correction before surpassing $21800 and reaching $22630. However, a breakout would undermine the August correction phase under favorable conditions and bolster the price to get the $25000 mark.

Technical Indicators

The daily-RSI slope shows a lateral trend above the halfway line with a recovery rally in the 14-day SMA. Moreover, the increasing gap between the MACD and signal lines is fueled by the rising trend in positive histograms.

Thus, the indicators tease a bullish breakout despite the BTC sellers maintaining dominance at $21,875 for now.

Resistance Levels - $1755 and $1900

Support Levels - $1600 and $1500