Technical analysis: Bitcoin could rise to 26K in the short term

Avatar James Lochner 2 years ago

The last few weeks have been quite positive for the crypto market, especially since it was announced that the Fed’s rate hike would not be so aggressive. We can say that the market was prepared for it, but the real question is: to what level could BTC rise? To do this, we need to evaluate the technical landscape.

Although there are setbacks and constant profit taking, we could say that BTC has consolidated in the 22K. This is the closest psychological support, and at the moment it is trading at US $ 22,963, registering a gain of 1.47% in the last 24 hours, and accumulating a weekly loss of 4.51% as we see from CoinMarketCap.

Things to Consider for Bitcoin

We must consider that the United States will continue to raise interest rates until it reaches the target set for this 2022-2023. This means that the dollar will continue to gain ground against BTC and other markets, and the risks of a recession will continue to spread. In addition, the ECB will also apply similar strategies, so it is worth being vigilant.

On the other hand, we have to keep an eye on the current tension between the United States, China and Taiwan; this could lead to a war that includes Russia as an ally of China; a fact that would not only be harmful for the rise of BTC, but also for equity markets and the economy in general.

However, it’s not all bad news. Recently, BlackRock, the largest global asset manager, announced that it would partner with Coinbase. This fact can be quite positive for the crypto ecosystem, we just need to see how the market reacts in the short term. But, evaluating the fundamentals, we may see a new crash in the long term. At the moment, we are fighting to protect BTC support in the 22K.

BTC could rise according to technical analysis

If we position ourselves in the daily timeframe, it can be clearly seen that a bullish channel is forming, but if we go to the 4-hour timeframe, we have a bearish channel within the bullish one. This means, that at the moment we are heading to the lower levels of the bullish channel that we see in the daily temporality.

Bitcoin remains bullish in the medium term, but in the short term we may see a correction
Bitcoin remains bullish in the medium term, but in the short term we may see a correction. Source: TradingView.

Therefore, during the next few hours BTC will remain oscillating between US $ 22,000 and US $ 23,000. It should be noted that this is a fairly important order block zone, and it is likely that after the testing of the zone is completed, BTC will continue to rise until it reaches US $ 26,000.

It is worth considering that the 4-hour time indicators show that BTC could fall to US$ 22,000. Since, Japanese candlesticks are located at the central levels of the MAIN channels, but with a bearish predominance. In addition, the RSI points to oversold levels, and is located below the average; it gives a score of 50.

BTC could rise to $26,000 in the short term
BTC could rise as high as $26,000 in the short term. Source: TradingView.

The MACD indicates that the bulls do not have the strength to extend the purchases. His histogram reflects weakness, and he is leaning more and more towards 0 points. It is almost certain that Bitcoin will soon reach 22K and then continue its bullish rally – this is a simple correction.

If the Japanese candlesticks close above the central levels of the ENV, we would have a confirmation of a rise to 26K.

The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.

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