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Bitcoin noticeably suffered during the recent collapse, testing the support level of $42,600. Subsequently, the asset rebounded to $46,000, but it has been in a state of accumulation for the past week. Due to the panic sale and a number of other factors, strong pressure was exerted on Bitcoin's price. However, an analysis of the current cryptocurrency indicators indicates a possible end of the consolidation phase and an attempt to rise.
The main cryptocurrency is still trading above the short-term support, but a formation for growth is visible in the narrow term. Long-term charts are also beginning to take on the bullish trend. Yesterday, Bitcoin has risen by 4% and is quoted at $46,000 earlier. At the same time, it is worth highlighting the upward dynamics of trading volumes, which indicates the activation of cryptocurrency audiences. The two-hour dynamics of the price movement indicates the continuation of the movement towards $47,000 level. The same picture can be seen on the technical charts of this digital asset, which gives hope for an attempt to break through the two nearest resistance lines: $47,800 and $49,000.
Looking at the hourly time frame, Bitcoin has formed a local formation for growth. If this is developed, the cryptocurrency will receive an additional growth impulse. It is worth noting that the technical charts do not express just a single bullish mood. The RSI indicator is moving along the 60th line, and the MACD has left the red zone and continues strong increase. Meanwhile, the stochastic shows signs of a reversal, which indicates the possible formation of a bullish divergence.
The four-hour time frame is showing a tendency to form a bullish impulse. The RSI indicator is moving along the 50th mark, while the MACD maintains an upward movement and approaches the zero mark. At the same time, the stochastic looks much smoother than on the hourly chart and indicates the continuation of the consolidation period. In other words, Bitcoin is conducive to growth, but the market is not in a rush to im the bullish potential, which is evident from the stochastic movement.
Bitcoin looks weak at a wider distance. The daily chart of the cryptocurrency indicates the initial stage of the recovery period. The RSI indicator is just beginning to move towards the 60 mark, and the MACD is in the red zone. At the same time, the stochastic began an upward movement, which indicates a positive trend while maintaining the current position of the cryptocurrency. The only concern is a possible bearish divergence in stochastic and RSI, which are gradually increasing.
In addition to technical charts, it is worth highlighting the on-chain indicators of the coin. Bitcoin managed to eliminate the price lag from the Daily Active Addresses indicator. As of 10:00 UCT+00, the number of unique addresses in the BTC network is on par with the current price of the asset. With a successful period of consolidation and the continuation of the upward dynamics of the growth of the number of unique addresses, we can count on a gradual and absolutely justified growth of Bitcoin. This was significantly facilitated by another investment from MicroStrategy, which acquired another $220 million worth of bitcoins, as well as strong support from Twitter. In the near future, these factors will become the fundamental basis for the growth of the main cryptocurrency.
However, Bitcoin is currently not ready for a bullish breakout. On-chain indicators and technical charts are encouraging, but there are too many coins on the market that put pressure on the price. It is also worth noting the passive behavior of large investors, because of which there is no powerful player in the buyer's market that can set an impulse for the retail audience. The MACD indicator, which is still near the 16% mark, should also be considered. This is an extremely high indicator and also puts pressure on the price. Taking all this into account, we should expect intra-range trading and the continuation of the accumulation period in the near future.
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