Bitcoin [BTC/USD] Technical Analysis: Capitulation is still underway as BTC goes into consolidation phase

Bitcoin, the world first’s cryptocurrency is still seeing sideways movement and in the price range of $3,500 to $3,600. The consolidation for BTC is occurring and a breakout from the recurring bear pennant is imminent.

The market cap of Bitcoin is holding steady at $63 billion, while the trading volume is above the $5 billion-line and most of the trading volume for BTC comes for the one and only BitMEX exchange via its BTC/USD pair.

1 Hour

Source: TradingView

The one-hour chart shows strong downtrend with a small or an infinitesimal uptrend that is due to the sideways movement and repeated correction of the price. The downtrend extends from $4,205 to $3,567. The support at $3,577 was breached multiple times on January 22, 2019, at 15:00 UTC and it has now been converted into a resistance line at the time of writing since the prices were below it. The subsequent support at $3,98 is the only thing holding BTC from collapsing into a downward spiral.

The Madrid Moving Average Ribbon shows that the price has broken out of the pressure created by the bears as green ribbons have developed, indicating that there was a trend reversal that has happened.

The MACD indicator also shows a bullish crossover which is trying to break through the zero-line to the top. The MACD histogram shows the same as green bars have developed over it.

The Relative Strength Index also shows a climbing RSI line that is on the verge of hitting the 60-line, indicating an increased buy-momentum for Bitcoin.

1 Day

Bitcoin [BTC/USD] Technical Analysis: Capitulation is still underway as BTC goes into consolidation phase

Source: TradingView

The Bollinger Bands for Bitcoin in the one-day chart shows a squeezed condition indicating that the volatility has reduced. The prices, however, are below the SMA indicating a bearish trend for prices.

The Aroon indicator shows a prominent downtrend in play as the Aroon-red line has struck the top of the Aroon band.

The Chaikin Money Flow shows a declining trend for Bitcoin indicating that the money is going out of the market [sell-action is more compared to the buy action].

Conclusion

The one-hour chart is lit with bull-signs for Bitcoin as indicated by the Madrid Moving Average Ribbon, MACD, and the RSI. The longer time frame shows that Bitcoin is still in the bearish territory.

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