Disclaimer: The results of the following analysis are the author’s sole opinion and should not be considered investment advice.
Bitcoin closed solidly above its recent moving averages, showing a bullish bias. Exchange inflows to Bitcoin continue to show a downward trend.
Bitcoin’s [BTC] The recent rally positioned the cryptocurrency above its 20 EMA (red) and 50 EMA (cyan) while revealing a near-term buying advantage. BTC has made consistent gains since turning its long-term trendline resistance to support (white, dotted lines).
Here is the AMB Cryptocurrency price prediction for Bitcoin [BTC] 2023-24
The recently discovered buying pressure saw a bearish counterattack at the $208,000 resistance. As the 20/50 EMA continues to look north, buyers are aiming to hold the upper hand for the next few sessions.
At press time, BTC is trading at $20,777.59, up 2.77% over the past 24 hours.
Can BTC’s Rally Break Above Its Immediate Resistance?
At the time of writing, the king coin found a convincing close above the 20/50 EMA. In doing so, the bulls struggled to challenge the limit at the $208,000 mark. If buyers break this barrier, the coin could continue to grow in the coming sessions.
In this case, the first major resistance level for BTC would be in the $21,700 area. After weeks of compression, the coin has finally entered a high volatility phase. Any reversal from the $208,000 mark could delay the recovery prospects by a few days.
Any immediate pull could find a solid base for a rebound in the $198k-$20,300 range. A bullish crossover of the 20/50 EMA will improve the chances of a continuation of the bull market ahead.
The Relative Strength Index (RSI), eyeing overbought territory at press time, witnessed growth. But the lower peak of Chaikin Money Flow (CMF) suggests a bearish divergence from prices. Any dip below the zero mark could invalidate the bullish bias.
Foreign exchange inflows decreased
The indicator has been on a sustained downward trend over the past six weeks after record foreign exchange inflows in September. The reading is needed to improve investor sentiment while suggesting signs of accumulation.
Nonetheless, the goal will be the same as discussed. Additionally, investors/traders should consider macroeconomic factors that affect broader sentiment. This analysis will help them increase their chances of profitable staking.
Source of information: Compiled from AMBCRYPTO by 0x Information.The copyright belongs to the author and may not be reproduced without permission