Bitcoin recovered on the chart over the last 24 hours as the king coin rose 2%. Prices of the coin saw some respite after visiting the $ 37,000 price level. As the broader market began to recover, Bitcoin’s price action moved to travel north.
Currently, the Bitcoin price is trading in closely consolidated territory because the coin is unable to cross the $ 39,800 price mark. It is too early to say that the bulls have reappeared in the market.
If demand doesn’t recover significantly, then the digital asset could return to the $ 38,000 price level, which is the support level for the coin. But this is a positive sign because Bitcoin has been able to overcome the multi-week resistance line.
If the bulls continue to put pressure, Bitcoin over the next trading session could come back at the $ 40,000 price mark. Bitcoin buyers need to continue to stay in the market for coins in order to trade effectively.
Bitcoin Price Analysis: Four Hour Chart
Bitcoin is priced at $ 39,100 at the time of writing. After a break through multi-week resistance the coin again fell from the $ 39,800 price level.
This indicates a brief correction as the coin price fell at the time of writing. Direct resistance to the coin was at $ 40,000.
A break above the price mark could push Bitcoin to run for the $ 44,000 price level. On the flip side, the support level rested strongly at $ 37,900 and falling below that, Bitcoin will trade near $ 37,000.
The trading volume of the coin has not yet gained momentum because the last trading bar appears red indicating negative price action.
Technical Analysis
A break above the multiweek resistance caused the buying strength to go down sharply. After rising on the chart significantly, the coin fell at press time. The profits aren’t much and that’s causing the coin to go down.
The Relative Strength Index appears to close near the 50 line indicating a decline in buying strength as buyers exit the market. At index had of the market standing at 27, which points to a fear of change.
Bollinger Bands reflect volatility in the market and the indicator is expanded at the time of writing. The expansion of the band indicates an increase in price volatility during the upcoming trading session.
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The MACD is responsible for reflecting market momentum and showing bullish momentum for the coin. At press time however, histograms appear to be missing and that signals the bearish price action continues for the coin.
Chaikin Money Flows is positive about capital flows because the indicator is above half the line. However, the indicator noted a small downtick and may have increased capital outflows which further underscored the bearishness in the market.
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Featured image from UnSplash, chart from TradingView.com
