Bitcoin wades through greener pastures as investors move big money

The past couple of days have written a positive script for the cryptocurrency market as prices began climbing again. Bitcoin and its compatriots enjoyed a surge post last weekend as the world’s largest cryptocurrency surpassed the $40,000, triggering a market-wide bull run.

At the time of writing, Bitcoin was trading for $40,086 at a market cap of $751.8 billion. Over the course of the last 7 days, BTC’s value had jumped by a whopping 22 percent. With a 24-hour trading volume of $46.37 billion, BTC was still miles ahead of its altcoin peer, Ethereum.

Bitcoin daily split

The hourly chart indicated a bullish path for Bitcoin, atleast till the close of the week. Hourly support held at $38,445 while the resistance had charted new territory at $43,289. The trend line on the hourly chart is representative of the market action right now, albeit on a smaller scale.

The MACD lines ha converged at the start of the bull run after which their movement has been largely parallel to one another. Corresponding histogram readings further added to the theory that the bull run was a fluctuating phenomenon. Bitcoin’s RSI indicator had fallen from the edges of the overbought zone and continued a mostly genial path.

This meant more and more people were buying into the Bitcoin market triggering an influx of capital as seen on the Chaikin Money Flow charts. Bitcoin’s short-term CMF stayed above the zero line, a sign that the capital coming into the market was more than the capital leaving it.

Bitcoin’s 24-hour range was slightly different with higher resistances and supports. At press time, the daily support was $32,477 while the resistance still held at Bitcoin’s ATH. The MACD lines on the daily chart were a stark contrast to the hourly charts.

Although Bitcoin needs to sustain its current price hike to make it big in the long term, all the signs were pointing to it. The Relative Strength Index metric recently climbed over the zero threshold towards the overbought zone. This was of significance because it had stayed below it for the past 30 days.

The aforementioned charts paint the picture of a cryptocurrency slowly but surely entering a bullish phase. Bitcoin’s price candles in the short term have seen more green than red for the first time in weeks and that is a definite ace in the sleeve for investors everywhere.

Akash Anand: I am an engineering graduate with a leaning towards content and hard-hitting journalism. The aim has always been to gather the latest happenings in crypto and present it to the world.