The bear’s influence on the market has been challenged by the bull with the week seeming relatively better for the cryptocurrency market in terms of the price. Bitcoin [BTC], which had undergone a reality check over the past few weeks, saw its support crumbling below the $4000-mark, sending a panic shockwave throughout the community.
1-hour
The one-hour Bitcoin chart shows how the cryptocurrency has consistently dropped from its sideways peak following the rapid bear attack. The downtrend that occurred saw BTC fall from $5,505 to $3,964. The support has been holding at $3,599.89 while the immediate resistance is at $5,563.49.
The Relative Strength Index [RSI] indicates that Bitcoin, after breaching the overbought barrier, has fallen back into the overbought-oversold clamp. This is a sign that although the buying pressure has decreased, it is still substantially more than the selling pressure.
The Chaikin Money Flow [CMF] indicator for Bitcoin has consistently maintained above the zero line. This means that the money coming into the market is greater than the money flowing outwards.
1-day
The one-day graph provides a bleak picture that shows the aftermath of the bear attack. The first downtrend saw Bitcoin falling from $7354.93 to $6507.5 while the recent crash brought the price down to $3965. The support for the cryptocurrency was created recently, holding at a lowly $3,742.23.
The MACD indicator shows the bear’s prowess with the histogram slowly picking up after staying negligible for quite some time. The signal line, on the other hand, has taken a small deviation towards the deviation that may result in a crossover with the MACD line. This is a sign of a short-term bullish spike.
The Awesome Oscillator displays a similar characteristic to the MACD indicators, with the bearish momentum putting a break on a momentum lull.
Conclusion
The week has been relatively better for Bitcoin compared to the previous few days. All the above-mentioned indicators read bullish in the short-term, but it looks like the bear will reign supreme in the long run.