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Bitcoin [BTC/USD] Price Analysis: Cryptocurrency fails to capitalize $4,000 breach as prices fluctuate negatively

Akash Anand

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Bitcoin [BTC/USD] Price Analysis: Cryptocurrency fails to capitalize on $4000 mark breach as prices fluctuate negatively
Source: Pixabay

Bitcoin [BTC]’s resurgence above the $4,000-mark made headlines across the cryptosphere, with many proponents of the space speculating its escape from the bear’s territory. Bitcoin’s rise has not resulted in an equal increase among other cryptocurrencies though as Ethereum [ETH], XRP and Tron [TRX] are still struggling to increase their prices as well as market cap.

1-hour:

Source: Trading View

Source: Trading View

The one-hour chart of Bitcoin displayed an uptrend which was the main reason for the price increase from $3,853.42 to $3,971.36. The short-term support was at $3,832.4, while the resistance held at $4,012.91.

The Relative Strength Index fell from the overbought zone, which meant that the buying pressure was losing the race to the selling pressure.

The amplitude of the Awesome Oscillator was comparatively lower than the earlier time period, a sign of the reduced market momentum in the Bitcoin market.

The MACD indicator showed the signal line and the MACD line meeting at the same point after a bearish crossover. The MACD histogram was almost negligible.

1-day:

Source: Trading View

Source: Trading View

Bitcoin’s one-day graph painted a picture opposite to that of the one-hour graph as the downtrend lowered the price from $6,309.50 to $4,022. The long-term support was at $3,166.52.

The Parabolic SAR was above the price candles at the time of writing, which meant that Bitcoin was still stuck in the bear’s territory.

The Chaikin Money Flow indicator was above the zero-line as the capital coming into the market was more than the capital leaving the market.



Conclusion:

The above-mentioned indicators stated that Bitcoin has not enjoyed any bullish gains after breaching the $4,000-mark. The charts also pointed at the fact that the bear’s hold on the market would continue.





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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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