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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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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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