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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency stumbles on the bear speed-breaker again

Akash Anand

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Source: Unsplash


The cryptocurrency market’s downturn has been apparent with Bitcoin, the largest cryptocurrency on the planet, showing no signs of a bullish recovery. This fact was further evidenced when on January 31, the cryptocurrency witnessed another bearish drop, forcing it to stay below the $3,500-mark. Bitcoin [BTC] is not the only cryptocurrency showing a rampant bearish behavior with several of the top cryptocurrency displaying the same signs.

1-hour:

The one-hour graph shows the utter dominance of the bear as the chart only shows a sustained sideways movement with a significant bearish drop. The downtrend resulted in Bitcoin’s price falling from $3,549.94 to $3,405.28. The support has been holding at $3,358.99 while the immediate resistance is at $3,620.54.

The Chaikin Money Flow indicator has been fluctuating rapidly over an extended period of time. At the moment, the CMF is below the zero-line, which means that the capital leaving the market is more than the capital coming into the market.

The Bollinger band points to the start of a new outbreak leaning towards the bearish side. This was kick-started by Bitcoin’s sudden drop of more than $30.

1-day:

Bitcoin’s one-day graph is a typical example of the prices dwindling at a drastic rate. The price drop stands out starkly on the charts, with the downtrend bringing the price down from $6,288.13 to $3,488.9 while the long-term support remains at $3,164.59.

The Relative Strength Index has maintained just above the oversold zone after crashing below it, back in December.  The RSI indicates that the selling pressure is significantly higher than the buying pressure.

The Awesome Oscillator displays a major lull as the graph is barely visible now compared to the surge before the start of the year. The dip means that the cryptocurrency market momentum is much lesser than it was before.

Conclusion:

The bear’s attack has played a significant role in changing the atmosphere of the cryptocurrency market. The strongest case for this is the massive layoff conducted by the NEM Foundation due to the XEM’s crash. The above-mentioned indicators all take the side of the bear, meaning it will be a long time before Bitcoin climbs out of its adversary’s pit.





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