What to know:
- Bitcoin buyers continue defending the key support zone, keeping the bullish setup intact.
- Strong momentum is pushing BTC above the upper Bollinger Band, while elevated RSI signals potential overbought conditions.
- Holding the support zone could open the door toward higher resistance levels and a potential move toward $90,000.
Bitcoin price action remains highly bullish and continues to hold on to critical support levels. The technical setup favors another leg up but is also signaling a possibility of a short-term retracement. The key will be whether support can be maintained or not.
At the time of writing, BTC is trading at $77,068, down 0.20% over the last 24 hours. Bitcoin has recorded $60.74 billion in daily trading volume, while its market capitalization stands near $1.55 trillion.
Bitcoin Price Momentum Strengthens
On August 23, crypto analyst Ted noted the power seen in the daily MACD of Bitcoin. A high MACD suggests the possibility that the bullish momentum is building up but doesn’t imply continuous price gains.
Ted also noted big bids near $74,000-$75,000. The area could be significant if Bitcoin makes a short pullback after the recent move higher.
If price stays above the level, it will mean that buyers are ready to protect the breakout. Otherwise, going back below the level may be bearish and pave the way for a further pullback.
Currently, Bitcoin price is trading above the level, which means the setup remains intact.
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Bitcoin Moves Above the Upper Bollinger Band
Technical analysis of Bitcoin also reveals how fast the market has been moving.
Bitcoin has risen above its upper Bollinger Band, which lies in the region of $76,905.12. Meanwhile, the Bitcoin price is being traded close to $77,222.93 according to the mentioned chart. The middle band lies at approximately $66,733.60, and the lower band is around $56,562.08.
Price movement above the upper band usually indicates the presence of momentum. It may also indicate the asset has moved away from its current average.
An additional warning comes in the form of the RSI indicator. The RSI of Bitcoin has increased to 80.35, which is above its average of 58.84. A reading of RSI more than 70 is an indication of overbought condition, indicating that the market is now susceptible to profit-taking or a pullback.
It does not necessarily imply that Bitcoin has peaked. Good markets can remain overbought for long periods if the latest money keeps coming into the market.
What Happens Next for Bitcoin Price?
The next significant test for the cryptocurrency is its ability to stay above the $75,000 area amid a sharp rise.
In case Bitcoin manages to stay above that level while ETF flows keep coming in strongly, investors can make a push towards $80,000 and then aim for some resistance levels further north. Breaking above the previous high of $79,500 would add up to an attempt for $90,000.
MEANWHILE, any rejection near current levels, coupled with weakening ETF demand, will likely spark a correction. The price area of $74,000-$75,000 is likely to be the first significant level worth watching.
The cryptocurrency, therefore, moves into its next stage with attention from both bulls and bears. The former might push the bullish wave further on the back of continuing institutional buying, whereas the latter may stall the move towards $90,000.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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