Bitcoin Broke Above The Multi-Week Resistance; What’s Next
Bitcoin recovered on its chart over the last 24 hours as the king coin surged by 2%. Prices of the coin saw some respite after visiting the $37,000 price level. As broader markets started to recover Bitcoin’s price action moved on a north-bound journey.
Currently, Bitcoin’s prices were trading in a tightly consolidated region because the coin did not manage to go past the $39,800 price mark. It is too early to say if the bulls have resurfaced completely in the market.
If demand doesn’t recover considerably, then the digital asset could fall back to the $38,000 price level, which is acting as a support level for the coin. It is however a positive sign because Bitcoin has managed to break past its multi-week resistance line.
If the bulls continue to exert pressure then Bitcoin over the upcoming trading sessions could manage to revisit the $40,000 price mark. Bitcoin buyers have to continue staying in the market for the coin to successfully trade on the upside.
Bitcoin Price Analysis: Four-Hour Chart
Bitcoin was trading at $39,100 on the four-hour chart. Image Source: BTC/USD on TradingView
Bitcoin was priced at $39,100 at the time of writing. After breaking past the multi-week resistance the coin again fell from the $39,800 price level.
This indicated a brief correction because the coin’s prices plunged at the time of writing. Immediate resistance for the coin stood at $40,000.
A break above that price mark could push Bitcoin to run to the $44,000 price level. On the flip side, the support level rested firmly at $37,900 and a fall beneath which, Bitcoin would trade near $37,000.
The trading volume of the coin is yet to pick up momentum because the last trading bar was seen in red indicating negative price action.
Bitcoin displayed a drop in buying pressure on the four-hour chart. Image Source: BTC/USD on TradingView
The break above the multiweek resistance caused the buying strength to fall considerably. After rising on the chart considerably, the coin plunged at press time. Gains weren’t substantial and that had pushed the coin down further.
The Relative Strength Index was seen closing near the 50-line which signified a fall in buying strength because buyers were exiting the market. The fear index of the market stood at 27, which points toward considerable fear.
Bollinger Bands depict volatility in the market and the indicator expanded at the time of writing. An expansion of the bands indicates an anticipated increase in price volatility over the upcoming trading sessions.
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Bitcoin flashed an increase in capital inflows on the four-hour chart. Image Source: BTC/USD on TradingView
MACD is responsible for depicting market momentum and it indicates bullish momentum for the coin. At press time however, the histograms were seen fading and that signalled at continued bearish price action for the coin.
Chaikin Money Flow was positive about the capital inflows because the indicator was above the half-line. The indicator however, noted a small downtick and that could possibly mean an increase in capital outflows reaffirming continued bearishness in the market.
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Featured image from UnSplash, chart from TradingView.com