A break-up of $4000 by Bitcoin and a rise above let us read the headlines that bears are weak and bulls are taking over the initiative, which means that the crypto winter is over. But if you look at the chart of Ethereum and XRP, they don’t show active growth.
On the hourly Bitcoin chart, an uptrend has been formed, which has led the cryptocurrency above $4,000. Bitcoin support was provided around $3,900, and resistance around $4,000, which he managed to get through.
At the time of publication, Bitcoin is trading at $4,118. Weekly growth of cryptocurrency is 4.5%.
The RSI relative strength indicator went out of the overbought zone on March 16 and is being formed in the neutral zone.
The Awesome Oscillator indicator is also formed significantly lower compared to the previous period. This suggests that market momentum is declining.
The MACD indicator showed that the signal line and the MACD line met at one point after the bearish cross.
On the daily chart, you can see a downward trend, which lowered the price from $6,300 to $4,000, and the beginning of the formation of an uptrend, which began to form from the $3,400 area and lasts. The $3,400 level is strong support for Bitcoin in the long term. The $4,200 area is the main resistance.
Parabolic SAR indicator forms its points under the price candles, which tells us about the presence of the uptrend.
The line indicator of Chaikin's cash money flow is formed significantly above the zero marks, which means that the volume of injections into the market is greater than the amount of capital outflow.
Indicators suggest a continuation of the uptrend, but the bulls' strength is minimal, so you should not count on sharp price jumps.
As we already wrote, for Bitcoin, it is important not only to gain a foothold above $4,000 in order to get closer to the resistance level of $4,200 again. But overcome it to avoid re-testing the lows. Looks like a foothold managed. We are waiting for the test of $4200.