Bitcoin Looks Forward to $22,000 as The Market Recovers Slowly

Bitcoin Looks Forward to $22,000 as The Market Recovers Slowly

August 23, 2022 0 By Jeanine Sanchez

Bitcoin might pick up pace in the direction of the $22,000 resistance area in the coming days as the general market is trying to stage a recovery. Tuesday is seeing a dramatic turn after the week started quite slowly.

Initial Staggering Loss

The crypto market shed over 3% of its total value on Monday. But it has gone up by 2% within a day. The recent positive move has taken the entire cryptocurrency market capitalization to over $1 trillion once again.

Bitcoin almost slid under the $21,000 mark, which stood as a level of support, on Monday. the asset, however, managed to stay steady and kept its value above the threshold. Bitcoin now trades close to $21,400 and it might make a further move for the $22,000 mark that has been a resistance if the market maintains its momentum. 

If Bitcoin would reach the $25,000 psychological mark in the short term is going to depend a lot on the general crypto market’s sentiment.

Bitcoin and the US Dollar continue to be bearish on the four-hour chart despite the fact that Bitcoin added another percentage to its price value over the course of 24 hours. All technical indicators have shown that Bitcoin is beginning to improve in performance but it is not in the bullish territory yet.

Imagining a Bearish Regain

The MACD trendline fell into the negative area on the 16th of August and it stayed put just there since then. It, therefore, shows that Bitcoin’s bearish regime is not yet done with.

The asset’s 14 days relative strength index is showing that Bitcoin is not in the oversold area anymore. But it is a long way from being in the overbought area on the daily chart.

As of the time of this report, Bitcoin trades at $21,360. If the market continues on its rebound trajectory, Bitcoin might just go beyond the $22,724 area of resistance.

There are, however, indications that Bitcoin might find it hard to get to the other resistance level at $23,960 in the short term. Except, of course, there is a significant bullish push.

Bears are still hanging around and they might regain strength in the market. Any attempt at regaining the market might have Bitcoin falling to points under $21,000 for the second time in one or two weeks. Bitcoin has sustained itself over the $20,000 mark and it should be able to keep at it for more days to come.