Bitcoin (BTC) is trying to regain its $2 trillion market cap as bullish momentum builds. Recent technical indicators such as the DMI and RSI suggest the uptrend is gaining strength, but also highlight the need for sustained buying activity to maintain upward pressure.
Meanwhile, BTC’s EMA lines hint at a possible golden cross that could push the price to test critical resistance levels around $98,870 and above. However, failure to break through these levels could result in a pullback, with key support zones at $90,700 and $88,000 coming into focus.
Bitcoin DMI Shows Uptrend Is Here
The DMI chart for Bitcoin shows that its ADX is currently at 27.3, marking a significant increase from 13.6 three days ago. The ADX, or average directional index, measures the strength of a trend on a scale of 0 to 100, with values above 25 signaling a strong trend and values below 20 indicating weak or no momentum.
BTC’s ADX 25 crossover suggests that the uptrend has gained significant strength, reflecting increased market confidence in the current price direction.
Directional indicators provide further context, with +DI at 27.8, down slightly from yesterday’s 32.7, and -DI at 11.9, a slight decline from 13.1. This configuration highlights that buying pressure remains significantly stronger than selling pressure, although the slight decline in +DI suggests some cooling in bullish momentum.
In the short term, BTC price is likely to remain in an uptrend, but to sustain further gains, renewed buying activity may be required to keep +DI high and ADX rising.
BTC RSI has been above 50 since January 1st
Bitcoin RSI is currently at 60.47, maintaining its position above the neutral 50 level since January 1st. The Relative Strength Index (RSI) measures the speed and magnitude of price changes on a scale of 0 to 100, providing insight into overbought or oversold conditions.
Readings above 70 typically indicate overbought conditions, suggesting a potential pullback, while readings below 30 indicate oversold conditions, often signaling a recovery.
Bitcoin RSI recently peaked at 66.6 before cooling to the current level of 60.47. The decline reflects a decline in buying pressure following a period of strong momentum.
While the RSI remains firmly in bullish territory above 50, the pullback suggests BTC price may consolidate or experience limited upward movement unless new buying activity emerges to push the RSI closer to overbought territory. This current level provides room for modest price increases while keeping the risk of overexpansion under control.
BTC Price Prediction: Bitcoin Must Break This Resistance to Rise to $110,000
The BTC EMA lines are showing signs of a potentially strong uptrend as the short-term EMA crosses over the longer-term ones. This bullish crossover often signals increased momentum, which could push Bitcoin price to test the resistance at $98,870.
A successful break above this level could pave the way for further gains, potentially reaching $102,590 and even testing $110,000 for the first time, depending on the strength of the trend. This will happen a few days after Bitcoin celebrates its 16th anniversary.
However, if the BTC price fails to overcome the resistance and the trend reverses, it may face downward pressure. In this scenario, BTC could retest the $90,700 support level, with a break below that level opening up the possibility of further declines towards $88,000.
