Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency cozies up to the bull as sideways price movement continues
The cryptocurrency market has been seeing some major shift in coin positions as Bitcoin [BTC], which started the initial market crash, has slowly begun to climb back up in terms of price. The cryptocurrency, the largest in the market, has returned to the $4,000 region after languishing below it for over three days.
The one-hour chart shows that Bitcoin prices have slowly started a sideways movement after a substantial uptrend. The uptrend lifted the prices from $3,744.4 to $4,313. The support for the cryptocurrency has been holding at $3,598.53 while the immediate resistance is still at $4,578.14.
The Relative Strength Index has stayed in the middle of the graph after crashing from the overbought zone. This signifies that the buying pressure has come down to form an even match with the selling pressure.
The Chaikin Money Flow indicator has fallen below the zero line which is a bearish signal. The slight spike on the graph is due to a sudden influx of money into the Bitcoin ecosystem.
The daily chart paints a bleak picture for Bitcoin with the presence of a significant downtrend. The price fall due to the downtrend saw Bitcoin come down to $4,268.43. The support on the one-day chart is still at $3,717.25 which was formed recently.
The Bollinger bands have just started a slight convergence which signifies the end of the ongoing bearish breakout. The size of the breakout was significantly greater than the previous one, as indicated by the size of the Bollinger cloud.
The MACD indicator points to a bullish crossover, with the signal line and the MACD line climbing up. The MACD histogram, on the other hand, has been predominantly bearish.
Bitcoin’s sudden surge had caused a lot of people to believe that the bull run had started, but alas that is not the case. The RSI, CMF and the MACD all predict a sideways price movement while the MACD states that there may be a slight bullish spike around the corner.
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