Crypto Daily: Buyers Have Finally Showed Force

Apr 19, 2022
12:04
2 min reading

Choise.com team

Over the last 24 hours, Bitcoin has increased by 3% and reached $41,000. Trading volume jumped sharply by 70% from $20 billion to $34 billion per day. Bitcoin was the main trigger of the current market growth with altcoins moving after it. This is evidenced by the Bitcoin dominance chart, which was in an uptrend yesterday.

Let’s take a look at the chart of the first cryptocurrency and try to figure out what to expect from it in the coming days:

Before going up, the price fell by 5% to $38,500. Prior to the beginning of the American trading session, Bitcoin was fluctuating between $38,500 and $39,000. After that, the chart turned up sharply and grew by 7%, breaking the $40,000 level confidently. Buyers have shown their real force for the first time this year.

As a result, the chart has formed a bullish engulfing candlestick pattern. Moreover, yesterday’s candle blocked 3 previous daily candles at once. This indicates a significant strength of buyers. Based on this fact, we expect to see the uptrend continuing in the coming days.

Additionally, we need to take a look at the RSI indicator. Yesterday, it surpassed the two-week moving trend line on both daily and 4-hour charts which only proves the strength of this movement. Moreover, the indicator has formed a clear convergence. This is another signal that speaks in favor of growth in the next few days.

Bitcoin is still moving in a large ascending channel. By the present moment, the price has bounced from the lower border and is currently heading towards the middle line in the $43,000 – $44,000 zone where the chart previously came after touching the boundaries of the channel. This zone is a magnet for Bitcoin.

The Bollinger band indicator also points to the $43,500 level. On the daily chart, the middle line comes near this specified mark which will have an additional impact on the price.

Based on all these factors, we expect to see Bitcoin growing further by another 7-9%. Most likely, the chart may reach the $43,000 – $44,000 area by the end of this week. This will probably help the entire market enter the growth phase again in the coming days.