Even though the past week was positive for Bitcoin, the recent price action could raise some question marks for the Bulls.
After starting the week below $10,500, Bitcoin was able to break above the old tough resistance and reach back to the $11,000 are.
However, while Bitcoin gained 5% over the past week, most of the leading cryptocurrencies lost market cap. LINK -18% and even Ethereum -2% are only two examples. The trending defi tokens suffered even harder.
This tells us that some or major reason for the BTC price gains was coming from the altcoins sell-off, and not from funds entering crypto. Just like in a healthy bull market.
Double-Top On the 4-Hour?
Looking at the following 4-hour chart, we can see a double top formation around $11,100, which is textbook bearish.
Moreover, there is bearish divergence on the RSI, which is also bearish. This happens when the asset’s price is increasing, while the RSI is decreasing.
Another issue to consider is the decreasing amount of volume over the past week, which shows that the buyers are losing their power.
Despite the above, and just as in crypto, the momentum might change very quickly. Keep in mind that Bitcoin is also waiting for the equity markets of Monday, including Gold, both had a significant effect on the price recently.
The level to watch is, of course, the recent high from yesterday around $11,100. In case Bitcoin breaks above it (further above lies the 50-days MA at around $11,250), the momentum could change quickly.
However, as long as Bitcoin having trouble at that price area, the price can easily drop from here.
From below, the first level of support lies around $10,800; followed by $10,500 and $10,400 – where lies the 100-days moving average line (the white line).
Total Market Cap: $357 billion
Bitcoin Market Cap: $202 billion
BTC Dominance Index: 56.8%
*Data by CoinGecko
BTC/USD BitStamp 1-Day Chart
BTC/USD BitStamp 4-Hour Chart
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