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Bitcoin [BTC/USD] Price Analysis: Bears take over coin as bulls lose momentum

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Bitcoin [BTC/USD] Price Analysis: Bears take over coin as bulls lose momentum
Source: Pixabay

Bitcoin [BTC] resumed its sideways movement after a pump on March 15, 2019. The price was oscillating constantly between its support and resistance points.

At press time, the price of Bitcoin was $3,977, while the market cap was $70 billion. The 24-hour trading volume for Bitcoin was $10 billion. Most of the trading volume was contributed by BitMEX, which offers Bitcoin perpetual contracts.

1 Hour

Source: TradingView

The one-hour chart showed converging uptrends and downtrends. The uptrend extended from $3,689 to $3,933, while the downtrend was seen from $4,163 to $4,039. The price was bouncing between the support at $3,953 and resistance at $4,043. The price had previously breached its lower supports at $3,848 and $3,696.

The Volume for Bitcoin was diminishing, indicating more sideways movement for the coin and a lack of trading interest.

The MACD indicator showed a bullish crossover, as the MACD and the signal line were intertwined.

The Relative Strength Index for Bitcoin showed a collapsed momentum for buyers as the RSI line was near the 40-line.

1 Day

Source: TradingView

The one-day chart for Bitcoin showed the exhaustion of the bull rally. The downtrend remained dominant as it extended from $9,800 to $4,000. The price was nearing resistance at $4,000. Subsequent resistance was seen at $7,641.

The Aroon indicator showed the uptrend hitting the top, following the bull rally. However, the downtrend found enough room to gain dominance.

The Stochastic RSI indicator showed that it had hit the oversold zone, and was undergoing a bearish crossover.

The Chaikin Money Flow indicated that the money inflow into the BTC market was high. This suggested a bullish market.



Conclusion

The one-hour chart and its indicators unanimously projected bearish pressure on BTC prices. In the one-day chart, the Aroon and Stochastic RSI sided with the bear as well.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Bitcoin

Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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