Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency enjoys the bullish sunlight as bear is kept at bay

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.