Bitcoin [BTC/USD] Technical Analysis: The price consolidates after a sudden crash

Bitcoin recently took a massive hit causing the prices to plummet down to as low as ~$3500. Alt-coins followed Bitcoin’s plunge and tanked faithfully causing the whole of cryptocurrency market to plummet by billions in a matter of few hours.

Bitcoin is currently trading at $3639 with a market cap of $64 billion and 24-hour trading volume at $6 billion.

1 Hour

Source: TradingView

The one-hour chart for Bitcoin shows an uptrend that extends from $3238 to $3608, while the downtrend spans from $4205 to $3639. The prices are finding support at $3578 and Bitcoin has already bounced off this support on January 10, 2019. The resistance point at $3944 was broken on January 6, 2019, and due to the recent slip-up, it has once again become a resistance point. The subsequent resistance can be seen at $4203 to $4239.

The MACD indicator shows a bullish crossover that is in play but below the zero-line. The histogram is lit up with green bars which indicates a bullish trend for Bitcoin.

The Stochastic indicator shows a bullish crossover that has just begun at the 55-line and has room to move upwards.

The Chaikin Money Flow shows that buyers are in control of the Bitcoin market as the money flowing into the market is far greater than the money flowing out of the market.

1 Day

Source: TradingView

The one-day chart shows a small uptrend that extends from $3184 to $3626, while the downtrend extends from $9800 to $4004. The longterm support can be seen hanging at $3183 while the resistance points are seen at $7359 subsequent resistance can be seen at $9113.

The Parabolic SAR markers are formed above the price indicating a bearish pressure on the candles.

The Aroon green and red lines are both hitting the 100-line which indicates that the Bitcoin market is undergoing consolidation.

The Relative Strength Index shows a gradual decrease in buying momentum of Bitcoin and it is now hanging in the middle, which indicates that the buying and the selling momentum is balanced.

Conclusion

The one-day chart shows a bullish trend for Bitcoin as indicated by CMF, MACD and Stochastic indicators. The one-day chart is showing a consolidation phase for Bitcoin as indicated by SAR, Aroon and the RSI indicators.

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