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Analysis

Bitcoin [BTC/USD] Technical Analysis: Bear attack prolongs as prices continue to dip

Akash Anand

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Source: Unsplash

Bitcoin [BTC]’s fluctuations below the $4,000 margin have been the talk of the town for quite some time now, with the world’s largest cryptocurrency suffering one of its worst crunches in over a year. Bitcoin’s rapid fall has also been reflected by the other cryptocurrencies as shown by multiple support breaks and market cap depreciation.

1-hour

The one-hour chart for Bitcoin shows a consistent downtrend which has brought the prices down from $3,874.93 to $3,659.85. The support has been holding at $3,688.74 while the immediate resistance is at $4,353.25.

The Parabolic SAR has been predominantly bearish as indicated by the markers staying above the price candles. At the time of writing, Bitcoin was going through a slight bullish spike indicated by the markers below the candles.

The Relative Strength Index graph has stayed closer to the overbought zone which shows that the buying pressure is more than the selling pressure.

The Chaikin Money Flow indicator has followed an eerily similar pattern to that of the RSI, staying above the zero line. The hold above the axis means that the money coming into the market is more than the outflow.

1-day

The Bitcoin one-day graph shows a price drop too, with the downtrend lowering the price to $3,929.28. The long-term support is still at $3731.89.

The Bollinger band has started a convergence indicating a trend change. The size of the Bollinger cloud has been much greater compared to the previous outbreaks.

The MACD indicator has been flat for a long time period after which it has moved into the bearish territory. The MACD line and the signal line after undergoing a bearish crossover has started moving as a conjoined pair.

The Awesome Oscillator shows a gradual pickup of the market momentum of the after a visible lull.



Conclusion

The above-mentioned indicators show the prowess of the bear with the resistance being lowered from an earlier high around $6,000. The price hikes look to be just sporadic with consistent growth seemingly missing from the charts.





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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.

Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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