Wednesday, March 20, 2019

Bitcoin Price Analysis: Cryptocurrency Fails to Break Bear Streak

The cryptocurrency winter is still on and that can be attributed to the struggle of most assets in the market to hit new resistance levels. Among these, is Bitcoin, the most popular virtual currency by a market cap which seems to be leading others sideways.

Bitcoin Finds Support at $3,800

An analysis of Bitcoin’s price trend in the past 24 hours shows that it has found support at the $3,800 price level. The latter has been the case for some days now where it trades between $3,800 and $3,900. But then, the expectation has been set, and that is for it to break $4,200 which has been its highest resistance level since the year began.

Nevertheless, some are of the opinion that we are at a major crossroad. Botje11, a user of the trading view platform pointed out that the bears have failed to push Bitcoin further below $3,800 while the bulls are yet to push it past $3,940. However, if the digital currency does decline below $3,800, then there is the possibility of hitting even $3,500.

1 Hour Chart on Trading View Platform

A closer look at the virtual assets’ 1-hour chart on Trading View reveals that there has been a slight improvement in its growth. It found support at $3686.92 and resistance at $3930.50. Asides its price performance, indicators provided on the platform can also be used to ascertain the current behavior of the market.

Some of these are the Relative Strength Index, Chaikin Money Flow, The Bollinger bands. The Relative Strength Index, for instance, depicts a higher buying pressure than a selling pressure given that the indicator is closer to an overbought zone. If the reverse was the case, then it would’ve been closer to the oversold zone.

Parabolic SAR Shows Bullish Sign

Another indicator is the Parabolic SAR which is showing bullish signs given that it has stayed below the price candles. As at press time, the MACD indicator is showing a value of 40.5 which translates into a sell. However, this can also represent a combination of bearish and bullish signals.

Other popular cryptocurrencies like Ethereum, Ripple, and Bitcoin cash have also shown a similar performance. Each is also yet to break the resistance levels that have already been set as their all-time high of the year.

Needless to say, these daily prices may be something to overlook and one may be better off focusing on Bitcoin’s price in the long run. Some like Mike Novogratz, a former Goldman Sachs partner is seeing a slow grind to $8,000 in 2019, while others like Tim Draper are hoping on $250,000 by 2021.

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