Bitcoin Broke Above The Multi-Week Resistance; What’s Next


Bitcoin has recovered on its chart over the past 24 hours as the coin is up 2%. Coin prices have seen some respite after visiting the $37,000 price level. As the broader markets began to recover the price action of bitcoin, it took a trip north.

At the moment, Bitcoin prices are trading in a tightly consolidated territory because the coin was unable to cross the $39,800 price mark. It is too early to say if the bulls have fully re-emerged in the market.

If demand does not recover significantly, the digital asset may fall back to the $38,000 price level, which acts as a support level for the coin. However, it is a positive sign as Bitcoin has managed to cross the multi-week resistance line.

If the bulls continue to put pressure on, Bitcoin may be able to revisit the $40,000 price mark during the upcoming trading sessions. Bitcoin buyers must continue to stay in the market so that the currency can successfully trade in an uptrend.

Bitcoin Price Analysis: Four Hour Chart

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Bitcoin is trading at $39,100 on the four-hour chart. Image source: BTC/USD on TradingView

Bitcoin was at $39,100 at the time of writing. After breaking through the resistance for several weeks, the coin fell once again from the $39,800 price level.

This indicates a short correction because currency prices are down at the time of writing. The immediate resistance for the coin stood at $40K.

A break above this price mark could push Bitcoin higher to the $44,000 price level. On the flip side, the support level has steadily settled at $37,900, and a dip below it, Bitcoin will trade near $37,000.

Currency volume has not gained momentum yet because the latest trading bar seen in red indicates negative price action.

Technical Analysis

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Bitcoin has shown a decrease in buying pressure on the four-hour chart. Image source: BTC/USD on TradingView

The break above the multi-week resistance caused the buying power to drop dramatically. After rising significantly on the chart, the currency is down at press time. The gains weren’t huge and that pushed the coin down even more.

The RSI was seen closing near the 50 line which indicates a decrease in buying power as the buyers were exiting the market. The fear indicator from the market at 27, which indicates significant concerns.

Bollinger Bands depict market volatility and index expansion at the time of writing. The widening of the bands indicates an expected increase in price volatility during the upcoming trading sessions.

Related reading | Long Squeeze of Bitcoin Incoming? High rates of financing

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Bitcoin is flashing an increase in capital flows on the four-hour chart. Image source: BTC/USD on TradingView

The MACD is responsible for depicting the market’s momentum and indicates the bullish momentum of the currency. But at press time, the charts are seen fading and this indicates a continuation of the currency’s bearish price movement.

Chaikin Money Flow was positive about capital inflows because the index was above half the line. However, the index indicated a slight decrease and this could mean an increase in capital outflows, confirming the continuation of the bearish trend in the market.

Related reading | One Coin, Two Deals: Why Bitcoin Futures Don’t Match Instant Signals

Featured image from UnSplash, chart from TradingView.com



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