Bitcoin (BTC) has been struggling to break above the $100,000 mark since February 5, facing tough resistance despite recovery efforts. Recent signals point towards sellers gaining control, with BTC's Directional Movement Index (DMI) showing increased bearish pressure.
The Ichimoku Cloud, however, hints at a possible reversal if Bitcoin manages to surpass key resistance levels. A resurgence in bullish momentum could see BTC challenging the $97,756 barrier and potentially reclaiming the coveted $100,000 threshold, with $102,668 as the next target.
BTC DMI Indicates Seller Dominance in the Last 24 Hours
Bitcoin's Directional Movement Index (DMI) reveals its Average Directional Index (ADX) sitting at 21.2, slightly down from its peak of 22.9, up from 15.5 two days back.
The ADX measures trend strength, ranging from 0 to 100. Values above 25 signal a strong trend, while those below 20 indicate a weak or ranging market.
At around 21.2, Bitcoin's trend appears relatively subdued, hinting at a potential shift in momentum and possibly the start of a downtrend.
The decline in Bitcoin's +DI to 15.5 from 23.3 and the rise in -DI to 21.9 from 9.2 point to diminishing bullish momentum and increasing bearish pressure, signaling a seller takeover.
These indicators suggest a possible downtrend if the bearish pressure continues to rise, but a stabilization and rebound of +DI could indicate consolidation before a decisive move.
Bitcoin Ichimoku Cloud Offers Hope Amid Bearish Sentiment
Bitcoin's Ichimoku Cloud chart presents a mixed outlook with early signs of a pending recovery. The Tenkan-sen line currently leads above the Kijun-sen line, hinting at building buying pressure.
Despite this, Bitcoin remains under the Kumo cloud, indicating a prevailing bearish trend and significant resistance at current levels.
The upward shift in the thinning Kumo cloud might signal weakening bearish momentum. A successful breach above the cloud could mark a trend reversal, particularly if the Tenkan-sen maintains its lead over the Kijun-sen.
However, failure to break above the cloud and a reversal in the Tenkan-sen would confirm a continued bearish trend.
Bitcoin Nearing $100,000 Again
Bitcoin came close to forming a new golden cross before a sharp price drop following the Bybit hack drove it from $98,000 to around $95,000 in just four hours.
Although its Exponential Moving Average (EMA) lines remain bearish, a potential recovery is evident as Bitcoin inches towards the $100,000 milestone.
The ADX and Ichimoku Cloud indicators suggest a weakening bearish momentum, paving the way for Bitcoin to retest the $97,756 resistance. A successful breach could propel Bitcoin to $100,000 and beyond, targeting $102,668, its highest level since early February.