- Bitcoin price eyes bullish move to $25,224, but first, it must conffirm a daily candlestick close above the 100-day EMA.
- Support between $20,156 and $20,763 adds credence to the bullish outlook in BTC price.
- Bitcoin price requires a continued increase in volume to keep the uptrend intact, otherwise retracment will likely occur.
Bitcoin price is in the green after breaking out to trade an intra-week high of $21,515 on some exchanges. The largest crypto's northbound move contradicts market expectations in light of the Federal Open Market Committee's (FOMC) decision to hike interest rates by 0.75% again. It is unclear if Bitcoin price will keep the uptrend intact, but investor optimism is on the roof for now.
Assessing the possibility of a short-term Bitcoin price rally to $25,224
Bitcoin price is generally in bullish hands, especially with the On-Balance-Volume (OBV) indicator in an upward-sloping trend. This position cements the bull's presence in the market. Moreover, CoinMarketCap reveals a 53.55% spike in volume traded over the last 24 hours.
The 100-day Exponential Moving Average (EMA) (in blue) is in place at $21,118 – protecting Bitcoin price's immediate downside. A daily candlestick close above this moving average is necessary to continue the northbound move first to $25,224 and possibly stretch the leg to $30,000.
Adding optimism to the bullish outlook in Bitcoin price is a vivid buy signal, as highlighted by the Moving Average Convergence Divergence (MACD) indicator. Traders who heed the call to long BTC as soon as the 12-day EMA (in blue) crossed above the 26-day EMA (in orange) saw their positions flip profitable instantly. Another cue was Bitcoin's move above a five-month trend line (in black).
Bitcoin price seems to have room for growth to the upside – and as such, investors who feel sidelined can hop on the wagon for a potentially profitable move to $25,224 and then to $30,000.
BTCUSD daily chart
A glance at the Directional Movement Index (DMI) exhibits a positive narrative for Bitcoin price. Buyers will generally stay at the helm of the trend as long as this index's -DI stays significantly above the +DI.
Relatively conservative traders can close their positions at $21,980 and $23,004, respectively. However, stubbornly bullish investors will likely ride the trend to $25,225, a hurdle marginally beneath the 200-day SMA, which currently holds the ground at $25,492.
On-chain data from IntoTheBlock shows Bitcoin price sitting above robust support. From the chart below, 1.65 million addresses previously purchased 1.09 million BTC between $20,156 and $20,763.
Holders within this range will likely continue buying BTC to keep the uptrend intact. On the other hand, they are unlikely to let bears wipe out the accrued gains as BTC moves to $25,224.
Bitcoin IOMAP chart
Conversely, Bitcoin must hold above the 100-day EMA to keep retail traders hooked. Otherwise, a daily close below the same level could quickly turn short positions profitable with downside profit targets at the 50-day EMA (in red) and the primary support at $18,000.
Doctor Profit, an analyst on Twitter, told his followers that he expected Bitcoin price to break out after the FOMC decision. However, he warns that it might snap out of the trend as it moves in a bullish ascending triangle – depicting decreasing volume.
As expected, #Bitcoin breakout after FOMC. Its pretty common to see low volume before important events, big market makers trying to price in their next moves.
— Doctor Profit (@DrProfitCrypto) November 5, 2022
I can see a clear breakout right here, but caution. Have a look at the next Tweet. (1/3) https://t.co/qSjRq4ZV1y pic.twitter.com/egJHDWNoPu
In other words, more volume is necessary if Bitcoin price is to keep its bullish outlook intact throughout the weekend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.