Bitcoin [BTC/USD] Price Analysis: Sideways trend resumes as bears suck volatility out of the market

Bitcoin has been moving stagnantly in a sideways fashion for over a week now, ever since its short-term pump on 8 February 2019.

The price of Bitcoin, at press time, was at $3,576 with a market cap of $63 billion. The 24-hour trading volume of Bitcoin is at $5.89 billion, and most of the trading volume for Bitcoin is coming from BitMEX by trading BTC perpetual contracts against the US Dollar.

1-hour

The one-hour chart for Bitcoin shows an uptrend that extends from $3,366 to $3,577, while the downtrend in the current time frame is not yet formed. The support at $3,358 is far from being tested ever since the above-mentioned rally. The resistance at $3,498 was breached a few days back however while the subsequent resistance at $3,577 is currently being tested.

The Parabolic SAR markers have spawned below the price candles, pushing the price upwards in line with a bullish trend.

The MACD indicator shows a bullish crossover as the MACD and the signal lines have crossed each other and are headed up.

The Relative Strength Index is slightly above the 50-line but below the 60-line. This indicates that the buying momentum is increasing for Bitcoin.

1 Day

The one day chart for Bitcoin shows a dominant downtrend that extends from $9,800 to $3,590. There isn’t a major rally which would lead to the formation of an uptrend. The support at $3,189 is holding good since November of last year. However, the support at $4,111 has now become a resistance line. The long term resistance for Bitcoin can be seen hanging at $7,641.

The Aroon indicator shows a further decline of the uptrend which was due to the recent short-term rally that occurred during the second week of February.

The Stochastic indicator is showing a bearish crossover in which, the Stochastic line and the signal line are both moving downwards.

The Chaikin Money Flow reads above the zero mark and indicates a decrease in the momentum of buyers i.e., the buyers getting exhausted while simultaneously the sellers gaining momentum.

Conclusion

The one-hour chart for BTC shows a relatively positive outlook as indicated and confirmed by the MACD, SAR and the RSI indicators. However, the longer time frame indicates a completely opposite trend for Bitcoin i.e., bearish trend, as indicated by the Aroon, Stochastic, and CMF indicators.