Bitcoin Slows Down After Reaching New ATH
Date: 2025-01-22 Author: Henry Casey Categories: CRYPTO PAYMENTS
According to the DMI indicator, the current trend of Bitcoin is weakening. Over the past two days, the ADX value has decreased from 30.7 to 23.2, indicating a loss of strength. Usually, values above 25 indicate a strong trend, while values below 20 indicate a lack of clear direction.
A decrease in +DI from 34.8 to 19.7 reflects a decrease in buying pressure, while an increase in -DI from 17.8 to 26.6 indicates an increase in sellers. If -DI exceeds +DI, this may signal a trend reversal, especially when the price enters a consolidation phase.
The Relative Strength Index (RSI) fell from 65.5 to 50.9 during the day, indicating a neutral zone between buyers and sellers. RSI values around 50 usually reflect a balance in the market. However, a decline in the indicator from higher levels indicates a weakening of bullish sentiment.
If the RSI continues to fall and approaches 40, this will confirm increased pressure from the bears. To restore positions, the index needs to return above 60, which will once again activate buying interest.
The EMA lines confirm that Bitcoin is still in an uptrend, but the reduction in the distance between the short-term and long-term lines hints at a slowdown in growth.
If the bullish momentum continues, BTC may test the $105,700 level. A successful breakout of this mark could push the price to $108,500 with the prospect of reaching $110,000.
However, if the momentum weakens, the price may fall to the support level of $98,800. A breakout of this value may lead to a fall to $97,800, and then to $91,200. Critical support is located at $89,400, and its loss will open the way to even lower values.
Thus, the fate of Bitcoin in the coming days depends on the strength of the current momentum and the activity of market participants.
