Bitcoin (BTC) price has been trading in a limited range of $92k-$95k for the last six days, showing a waning momentum, technical analysis warns.
The coin’s Average Directional Index (ADX) reading on the daily chart is at 29, while the Relative Strength Index (RSI) is at 66. However, the shorter 4-hour time frame has the RSI at 54 and the ADX has declined sharply from 40 to 22 in the last three days.
The technical indicators on the BTC price will need the coin to establish support at $95k to continue the upside. That level is the immediate psychological barrier on the coin, and 14% gains in the last month underline a bullish sentiment has raised the prospect of continued upside. However, Bitcoin’s trading volume declined by 19% in the last 24 hours, signaling declining investor appetite.
The development comes as Arizona’s House of Representative voted to approve two bills giving the state the leeway to spend up to 10% of its assets to buy Bitcoin or any other cryptocurrencies. The bills now await assent by Governor Kattie Hobbs and could potentially sets the tone for other states to follow suit. In the end, that adds support for Bitcoin price in the medium and long term.
On the other hand, institutional affinity towards Bitcoin remains strong, with impressive uptake of ETFs. For instance, BlackRock Bitcoin spot ETF bought $216.7 million worth of the coin on Tuesday. Overall, Bitcoin spot ETFs have registered net positive inflows for the last eight successive trading sessions, the best run in the last month.
Bitcoin Price Prediction
The momentum on Bitcoin price signals bullish control above the pivot mark at $94,220. That trend will likely meet the first resistance at $95,365. However, an extended control by the buyers will break above that level, potentially pushing the price to test the psychological hurdle at $96,000.
Alternatively, breaking below $94,220 will shift the momentum to the downside. That will likely see the first support established at $93,450. Breaking below that level will invalidate the upside narrative. However, if the sellers extend their control, the downward momentum could go on to test $92,575.
