Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency loses sheen as bear continues to devour market

The cryptocurrency market’s behavior has been something to look out for with some days showing direct bullish signals while other days the coins succumb to the bear. Popular cryptocurrencies like Bitcoin [BTC], XRP and Ethereum [ETH] all show similar drops and gains as evidenced by the charts. Bitcoin, which had held a safe zone above the $4,000 mark, is now struggling to make ends meet hovering around the $3,600 point.

1-hour

The acute angle held by the downtrend line shows the effect of the bear on Bitcoin. The drop brought the price down from $4,028.42 to $3,675.2. The immediate support has been holding at $3,493.99 while the resistance is at $4,068.92.

The MACD indicator shows the signal line and the MAC line converging above the MACD histogram. The convergence formed looks to be bearish with the signal line pointing downwards.

The Relative Strength Index indicator has broken the overbought ceiling and has dipped slightly towards the graph. The hold near the overbought zone is a sign of the buying pressure being more than the selling pressure.

1-day

BTC’s one-day graph displays a picture of a cryptocurrency struggling to climb out of the bear pit. The last major downtrend is the one that brought Bitcoin’s value down from its psychological long term support at $6,000. The range of the downtrend was from $6,282.78 to $3,859.86 while the long term support is at $3,153.12.

The Chaikin Money Flow indicator is just below the zero line, a pattern shown by Bitcoin for close to two months now. The hold below the zero line is indicative of the fact that the capital flowing out of the market is much more than the capital entering the market.

The Awesome Oscillator has gone back to a lull after a spike up. The pattern is very sinusoidal as the change in investor sentiment has changed the market momentum too.

Conclusion

As we arrive in the middle of the first month of the new year, the cryptocurrency market remains ever so volatile. A majority of the above-mentioned indicators all point to an extended bear reign with sporadic bullish highs in between for Bitcoin.