Keeping a Close Eye on Bitcoin: Technicals Point to Potential Price Uptick

The current Bitcoin price trend exhibits technical patterns that support a newly established bullish sentiment. Traders are advised to monitor Bitcoin closely, as an increase in price and volatility is expected. The price of Bitcoin is presently trading within a confined range subsequent to a 5% price appreciation on January 17.

The aforementioned uptick was accompanied by a substantial volume of transactions, amounting to $495,000, according to data obtained from the Binance exchange API. Remarkably, the preceding day witnessed a 3% decrease that generated the highest transactional volume of roughly $450,000 at the time. The bearish candle was almost entirely reversed as the bulls closed above the previous day's opening price at $24,569 on January 17.

Currently, Bitcoin is trading at $24,646. The 8-day exponential moving average (EMA) is approaching a bullish cross over the 21-day simple moving average (SMA), which could potentially result in a significant upward price movement. The converging indicators suggest a short-term bullish trend, which may prompt more market participants to enter the market as buyers.

The bullish thesis would be invalidated if the price of Bitcoin were to fall below the crossing indicators at $22,985. In such a scenario, Bitcoin may potentially retest the support level at $21,000, resulting in a 15% decline from its current price.