Bitcoin reclaimed the $4,000 level in a show of great market sentiment as it was a resistance level the coin hadn’t crossed in over two months.
Bitcoin’s price, at press time, was $4,004, with a market cap of $71 billion. The coin’s 24-hour trading volume also surged due to the recent pump, hitting $10 billion. Most of the trading volume for Bitcoin came from BitMEX exchange, which contributed to a whopping $1.47 billion in trading volume.
1-hour
Source: TradingView
The one-hour chart indicated bullish momentum for Bitcoin as the downtrend inclination suddenly changed due to the rally. The downtrend extended from $4,163 to $4.013, while the resistance at $3,953 was tested during the rally.
The Parabolic SAR markers formed below the price candles and indicated a bullish presence in Bitcoin’s one-hour chart.
The MACD indicator underwent a bullish crossover, reaching the 30-line.
The RSI struck the oversold zone, and was heading down towards the 70-line. This indicated a shift in momentum for Bitcoin.
1-day
Source: TradingView
The one-day chart showed a downtrend that extended from $9,800 to $4,000. The support line at $3,122 was holding well, but the resistance at $4,111 was about to be tested. The subsequent resistance was seen at $7,641.
The Aroon indicator showed a strong uptrend for Bitcoin, while the downtrend line was headed to the bottom. This indicated a change in trend in the longer timeframe.
The Stochastic indicator also showed a strong bullish crossover heading towards the oversold zone.
The Chaikin Money Flow tool was above the zero-line and indicated a massive money influx into the Bitcoin markets.
Conclusion
The one-hour chart showed heavy bullish momentum for Bitcoin, as indicated by the SAR and the MACD indicator. However, the RSI indicated a slight decrease in bullish momentum. The one-day chart for Bitcoin showed unanimous massive bullish momentum, unlike the one-hour chart.
Read more at: https://ambcrypto.com/bitcoin-btc-usd-price-analysis-price-on-a-roller-coaster-ride-after-briefly-crossing-4000-mark/
