Bitcoin [BTC/USD] Technical Analysis: Dark clouds loom over Bitcoin’s future

The price of Bitcoin has been stuck in a sideways pattern ranging from $3,498 to $3,577 retesting the highs and lows time and again.

The price of Bitcoin, at the time of writing, was at $3,541 with a market cap of $62 billion. The 24-hour trading volume of Bitcoin is $5.1 billion and most of the trading volume is contributed by BitMEX exchange via BTC/USD trading pair.

1 Hour

The one-hour chart shows strong downtrend with a small uptrend that is due to the sideways movement and repeated correction of the price while the downtrend extends from $4,205 to $3,567. The support can be seen at $3,577  and at $3,498, which are the only two supports holding BTC from collapsing into a downward spiral. The resistance point for BTC is seen at $3,654.

The Parabolic SAR markers are seen spawning above the price candles indicating a bearish pressure from the upside for the BTC prices pushing it further down.

The MACD indicator shows bearish crossover in the one-hour chart as the histogram is also indicating the same trend, with red bars that have developed below the zero-line.

The Awesome Oscillator shows a bearish crossover as well with the red lines breaching to the bottom of the zero-line indicating that the momentum of the price has reduced drastically.

1 Day

The Aroon indicator shows Aroon red-line that has struck the top and is on its way down indicating that the downtrend, although prominent is slowly exhausting.

The Bollinger Bands show a bearish pressure on the prices with decreased volatility as the bands have squeezed and the prices have fallen below the SMA.

The Chaikin Money flow shows a rather negative stance for Bitcoin in the longterm scenario as the CMF line is below the zero-line indicating that money is flowing out of the market for Bitcoin.

Conclusion

The one-hour chart shows a massive bearish scenario for Bitcoin as indicated by SAR, MACD, and AO indicators. The Aroon, CMF and the Bollinger Bands all indicate a bearish stance for Bitcoin in the longer time frame.