The price of Bitcoin (BTC) has headed northward over the final 24 hours, up over 1% at $7,272. Equally a outcome, each of the major cryptocurrencies has followed the market leader with the total cryptocurrency market cap reaching $198 billion and BTC authority remaining steady at 67% of the full market place. In other words, Bitcoin's marketplace cap now stands at $132 billion.

Cryptocurrency market daily view. Source: Coin360

Cryptocurrency market daily view. Source: Coin360

Weekly nautical chart

BTC USD Weekly chart. Source: TradingView

BTC USD Weekly chart. Source: TradingView

Despite a strong terminate to the calendar week, the cost of Bitcoin is down 3.2% from the opening of $7,520 on Monday morning. The 50 and 100-week moving average (WMA) crossed this week, which is typically a sign of a market shifting to a more bullish tendency. But every bit information technology stands, Bitcoin remains beneath the 100-WMA and has been unable to intermission through the previous support that has now turned into resistance at $vii,600.

It is critical that the $seven,600 level exist reclaimed in order to exist able to declare that there has been a key shift in marketplace structure that favors the bulls. Currently, trading volume remains in decline, showing a general lack of selling force per unit area in the downtrend and this may indicate a reversal could be awaiting.

The MACD is trending down below zippo, which is another bearish signal but at that place is likewise an unconfirmed bullish difference building on the histogram. This helps to identify that the downwards momentum is in pass up.

 Daily chart

BTC USD Daily chart. Source: TradingView

BTC USD Daily chart. Source: TradingView

The daily timeframe shows that Bitcoin price is all the same supported by the bespeak of control at $7,200; the price where the most volume has traded in recent times. This is too the heart of the current trading range and also an of import level to pay attention to every bit a loss of support here would open up the door towards retesting the range lows in the mid $half-dozen,000s.

The moving boilerplate convergence departure indicator, or MACD, is currently below zero merely the signal and MACD line are trending to the upside and crossed bullish, which can explain the attempted bullish reversal today.

Each of the daily moving averages remains in reject following a "death cantankerous" of the fifty and 200 moving averages a few weeks ago.

iv-hr chart

BTC USD 4 hour chart. Source: TradingView

BTC USD four hour chart. Source: TradingView

The 4-hour nautical chart conspicuously shows the price failing to brand information technology to the peak of the range earlier in the week and afterwards recording a lower loftier. This means that now there is some compression into the depression $7,000s with $7,200 propping up the toll.

The 4-60 minutes MACD and RSI are both showing signs of a tendency change to the upside, which implies that price may go higher over the weekend.

1-hr nautical chart

BTC USD 1-hour chart. Source: TradingView

BTC USD 1-60 minutes nautical chart. Source: TradingView

The one hour nautical chart shows that Bitcoin has formed a rounding bottom, which is in the process of attempting to break out to the upside.

This — combined with a bullish MACD higher up zero and a breakout in the RSI — would imply that there may exist an endeavour past the bulls to retest $7,400 over the weekend. Since weekend price action has a history of speedily reversing into the new week any weekend opportunity may be short-lived.

Market place sentiment

BTC Futures USD 1weekchart. Source: TradingView

BTC Futures USD 1weekchart. Source: TradingView

The CME futures are currently trading with a small premium over spot prices whereas they've been trading with a discount in the week prior, implying that traders are generally neutral on the future cost of Bitcoin versus today.

The commitment of traders report is a report issued by the Commodity Futures Trading Commission, or CFTC, which records the holdings of various market place participants. As it stands, retail traders remain the about positive near the price of Bitcoin. Professional traders take moved from net long to internet short and institutions remain curt just at that place is a notable shift in their exposure to the downside.

Bitcoin Fear and Greed Index. Source: alternative.me

Bitcoin Fearfulness and Greed Index. Source: alternative.me

The Bitcoin Fear and Greed Index meanwhile shows that the move down to the middle of the range at $vii,000 has helped shift sentiment to an Extreme Fear score of 22.

Historically there has been a correlation between low sentiment scores and reversal in cost, only typically these reversals are seen when the index score is below 20 equally was seen for a sustained period between December 2022 and January 2022.

Looking forward

Overall, there as some signs that Bitcoin may be in the early stages of reversing the downtrend that looks to be losing momentum. The market place is shaping upwardly to await as though there may exist a push to the bullish side over the weekend, only this is likely to be temporary as has been seen in the past.

Sentiment and positioning of retail investors going into the finish of the year would suggest that despite at that place existence fright in the market, participants have not been shaken out. A shakeout may even so need to occur before the BTC/USD pair and the cryptocurrency market equally a whole can finally make a more fundamental reversal.

The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should carry your ain research when making a decision.