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Analysis

Bitcoin [BTC/USD] Price Analysis: Cryptocurrency holds above $4000 mark as bear watches over

Akash Anand

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Bitcoin [BTC/USD] Price Analysis: Cryptocurrency's hold above the $4000 market watched over by the bear
Source:Pixabay


The market’s sideways movement had been ongoing for quite some time now, a scenario which was punctuated by last week’s bullish spikes. Popular coins like Bitcoin [BTC], Ethereum [ETH], and XRP were all victims to the consolidated price hold, as was evidenced by the fall in market cap and market volume. However, Bitcoin saw some positive developments, with the coin breaching the $4000 threshold and holding on.

1 hour

Source: TradingView

The one-hour chart for Bitcoin showed the uptrend that caused the price to rise from $3853.72 to $3956.04, while the immediate support stayed at $3808.61. The short term resistance for the coin was at $4014.05.

The Bollinger Bands formed a pipe-like shape due to sideways movement taking hold. There was also an increase in the size of the Bollinger clouds, due to the bullish price breakout.

The Parabolic SAR was below the price candles, a bullish sign. Prior to this, the dotted markers were a mix of bearish and bullish signals.

The Chaikin Money Flow indicator fell just below the zero line, an indication of the capital leaving the market being more than the capital coming into the market.

1 day

Source: TradingView

Bitcoin’s one-day chart was opposite to that of the one-hour chart, as the downtrend lowered the price from $6544.72 to $4008.12. The long term support was holding at $3148.24.

The amplitude of the Awesome Oscillator was much lower than previous instances, suggesting that Bitcoin market momentum was significantly low in the long term.

The MACD indicator moved together after undergoing a bearish crossover. There was also a severe lack of movement due to the sideways hold on the coin’s price.

The Relative Strength Index was close to the overbought zone, a sign of the buying pressure being more than the selling pressure.

Conclusion

The above-mentioned indicators showed that significant bullish spikes were unable to increase Bitcoin’s momentum, and that the coin was still governed by the bear.





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