The year 2022 has been one of the most difficult times in the cryptocurrency world. The fluctuating effect of the market has led several investors to incur huge losses with some pulling out of the business.
However, it seems the Bitcoin market has performed ably over the past 24 hours, erasing some of the losses recorded over the weekend and projected to soon break through the $21,000 resistance point.
Since the beginning of the week, the market has been performing well. Bitcoin’s value has increased by nearly 6% in the last 24 hours, and it now trades above $20k per coin, with the total market cap exceeding $900 billion. The performance follows a poor week in which the total market cap fell to around $800 billion.
Accordingly, severing the $20k psychological level is a significant step for BTC, which has been struggling in recent days. Bitcoin fell below $18,000 for the second time in a month last week. However, Bitcoin has recovered well and could reach the $21,000 resistance level if the rally continues.
A careful study shows that the 4-hour chart of BTC/USD is bullish because Bitcoin has been performing well since the beginning of the week. If the bulls maintain control, the technical indicators indicate that BTC could rally higher.
The MACD line is near neutral and could move into the positive zone if the rally continues. The 14-day relative strength index of 63 indicates that if market conditions improve, Bitcoin could soon enter the overbought region.
At the time of writing, BTC was trading above $20,200. If the rally continues, BTC may break through the $21,000 resistance point before the end of the day. However, it would require broad market support to break through the $22,199 resistance level in the near term.
Thus, we project that Bitcoin may lose its $20k support level if it does not break through the $21k resistance point soon. BTC should remain above the $18,564 support level in the short term unless there is an extended bearish run. Stay connected with TechGenyz for more updates.
