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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency sees price surge as bear watches over the market

Akash Anand

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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency sees price surge as bear watches over the market
Source: Unsplash

The cryptocurrency market has been seeing something of a resurgence as the week opened, with most of the coins seeing a bullish spike. Popular cryptocurrencies like Bitcoin [BTC], XRP, Ethereum [ETH] witnessed their supports being protected, with Bitcoin being one of the biggest gainers.

1 hour:

The one-hour chart BTC chart shows a surprising twist in the cryptocurrency’s tale. The earlier downtrend saw the cryptocurrency fall from $3556.7 to $3346.7. The latest uptrend took Bitcoin from $3319.3 to $3501.23.

The Bollinger bands after the recent spike show both the upper band and the lower band achieving a 180-degree divergence from each other. This is a sign of the start of a bullish breakout.

The Awesome Oscillator signals bullish in the current scenario with the indicator showing sporadic bullish and bearish signs earlier.

1 day:

The one day Bitcoin chart paints a bleak picture for Bitcoin with the prices dropping consistently. The long-term support has been holding at $3270.6 while the recent downtrend brought the prices down to $3477.7 from $6447.1.

The Relative Strength Index indicator shows the cryptocurrency climbing back into the graph after crashing below the oversold zone. The sudden spike shows that the buying pressure has slightly increased even though the buying pressure is still far greater.

The Chaikin Money Flow indicator puts the signal below the zero line. This shows that the money coming into the market is much lesser than the money flowing out of the market.

Conclusion:

The above-mentioned indicators except for the Bollinger band all take the side of the bear. The Bollinger band with its massive divergence indicates a bullish surge that may end up in sideways price movement.

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