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Bitcoin (BTC) is attempting to recover 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, which could propel the price to test critical resistance levels near $98,870 and beyond. However, failure to break these levels might result in a pullback, with key support zones at $90,700 and $88,000 coming into focus.
Bitcoin DMI Shows the Uptrend Is Here
The DMI chart for Bitcoin indicates that its ADX is currently at 27.3, marking a significant rise from 13.6 three days ago. The ADX, or Average Directional Index, measures the strength of a trend on a scale from 0 to 100, with values above 25 signaling a strong trend and values below 20 indicating weak or absent momentum.
BTC’s ADX crossing 25 suggests that the uptrend has gained substantial strength, reflecting increased market confidence in the current price direction.
The directional indicators provide further context, with the +DI at 27.8, slightly down from 32.7 yesterday, and the -DI at 11.9, a minor decrease from 13.1. This configuration highlights that buying pressure remains significantly stronger than selling pressure, though the slight decline in the +DI suggests some cooling in bullish momentum.
In the short term, BTC’s price is likely to remain in an uptrend, but sustaining further gains may require renewed buying activity to keep the +DI elevated and the ADX rising.
BTC RSI Has Been Above 50 Since January 1
Bitcoin RSI is currently at 60.47, maintaining its position above the neutral 50 level since January 1. The Relative Strength Index (RSI) measures the speed and magnitude of price changes on a scale from 0 to 100, providing insights into overbought or oversold conditions.
Values above 70 typically indicate overbought conditions, suggesting a potential pullback, while values below 30 signify oversold conditions, often signaling a recovery.
Bitcoin RSI recently peaked at 66.6 before cooling to its current level of 60.47. This decline reflects a moderation in buying pressure after a period of strong momentum.
While the RSI remains firmly in bullish territory above 50, the pullback suggests that BTC price could consolidate or experience limited upward movement unless fresh buying activity emerges to push the RSI closer to the overbought zone. This current level provides room for moderate price gains while keeping the risk of overextension in check.
BTC Price Prediction: Bitcoin Needs to Break These Resistances to Rise to $110,000
BTC EMA lines are showing signs of a potential strong uptrend as the short-term EMA is crossing above the longer-term ones. This bullish crossover often signals an increase in momentum, which could push Bitcoin price to test the resistance at $98,870.
A successful breakout 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 trend’s strength. That would happen days after Bitcoin celebrated its 16th birthday.
However, if BTC price fails to break above the resistance and the trend reverses, it may face downside pressure. In this scenario, BTC could retest the $90,700 support level, with a break below this opening the possibility of further declines to $88,000.