Bitcoin Rising As Crypto’s Utility Continues To Increase: What Does The Chart Say Next?

Bitcoin (CRYPTO: BTC) Gained More Utility Thursday When Twitter Inc (NYSE: TWTR) announced The tipping feature is available to all users and provides an option to pay and receive tips in the apex cryptocurrency. The option will be available soon on iOS and in the coming weeks for Android users.

The Bitcoin Chart: Following the announcement, Bitcoin rose about 2.5% in the 45 minutes between 1:00 PM and 1:45 PM ET. The crypto then started to consolidate the move on lower time frames.

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By mid-afternoon, Bitcoin was trying to gain support for the eight-day exponential moving average (EMA) on the daily chart. If Bitcoin can regain the level as a support, it will negate the bear flag pattern created between September 19 and Thursday.

Bitcoin was printing a bullish Marubozu candle holder, indicating that higher prices may come on Fridays and weekends. Technical traders may have seen the reversal to the upward setting on September 21, when Bitcoin’s relative strength index nearly reached overbought territory at the 35% level.

Bitcoin is trading below both the eight-day and 21-day EMAs, with the eight-day trend below the 21-day, which is bearish for the short term. The crypto is also trading slightly below the 200-day simple moving average (SMA), indicating that general sentiment is bearish. If Bitcoin trades towards the $46,700 level in the coming days, it will cause the eight-day EMA to back above the 21-day and 200-day SMA, which would be bullish.

  • Bulls want to see sustained high bullish volume to push Bitcoin above the nearest resistance level at $44,850 and then for a trend change with higher lows and lower highs to develop when the crypto finally consolidates.

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  • Bears want major bearish volume to keep crypto below the eight-day EMA and for selling pressure to then drop the coin back to the $42,233 level. If Bitcoin loses the area as a support, it could fall back to $39,600.