The Bitcoin price has been making a slight recovery on its chart. Although the coin has been consolidating over the past few weeks, BTC has been attempting to make an upward movement. Over the last 24 hours, the coin has registered a 0.6% appreciation.
Looking at the weekly progress, BTC has been stuck between two price levels of $16,400 and $16,900, respectively. Going by the technical outlook, the coin has depicted positive sentiments, with buyers slowly returning to the market.
It also formed a bullish pattern on the daily chart, which meant that the price might encounter a recovery over the upcoming trading sessions. The accumulation showed up on the chart, which meant that the coin was experiencing demand over the past trading sessions.
BTC has also formed a double bottom pattern, which is a charting pattern that resonates with an upcoming major move for the king coin. At the moment, Bitcoin is trading 76% below its all-time high, which was secured in the past year. The market capitalization of BTC also noted an increase, signifying bullish strength building up.
BTC was trading at $16,800 at the time of writing. The coin crossed the $16,800 mark as demand surged. Overhead resistance for Bitcoin stood at $17,000. The double bottom formed by Bitcoin might cause the coin to rally and move above $17,000.
On the other hand, if Bitcoin slips from its current price level, then the support zone for the coin stands at $16,400. A fall from $16,400 will drag the price down to $16,100. The amount of BTC traded in the last session was green, which meant that the coin was entering a bullish zone.
Technical Analysis
Bitcoin demand has been increasing in recent trading sessions. The Relative Strength Index (RSI) moved up closer to the half-line and touched it, recording an increase in buyers. The RSI also formed a bullish divergence (white), which is a sign of positive price action.
Similarly, Bitcoin price travelled above the 20-Simple Moving Average line, which meant buyers were driving the price action in the market. A move above the 50-SMA will ensure the BTC price trades above the $17,400 mark.
In relation to bullishness, other technical indicators have also sided with the incoming bullish force. The Chaikin Money Flow (CMF), which indicates capital inflows and outflows at a given time, registered positive movement.
CMF was positive and above the half-line, which portrayed an increase in capital inflows. The Moving Average Convergence Divergence (MACD) is responsible for reading price momentum and reversals of the same. MACD demonstrated green histograms, which were buy signals for the coin. This meant that Bitcoin could anticipate an increase in price.
