After a week that can only be described as fragile and uncertain, the Bitcoin bulls got their strength back.
While investors were wondering whether last week’s bearish control signaled a further decline or a higher breakout, the bulls held out hope that the coin would move in a more positive direction.
That is exactly what happened this week.
Since a new 2019 record was established this week, it is safe to assume that the bulls are back and are stronger than before.
The charts look better than they have thus far this year, with no major issues apparent.
Needless to say, the price of Bitcoin rose quickly, breaking a major resistance level around $8,000 and settling above this line.
Higher levels of support and resistance were established as the bulls continued to move up.
Based on the traction and the strength the bulls have gained, the majority of experts suggest Bitcoin is on its way to $12,000.
While this may seem unrealistic to some, the recent growth of Bitcoin hints that what was once improbable may soon become a reality.
Among cryptocurrencies, Bitcoin retained its position as the most popular, accounting for 56.7% of the total crypto market cap.
Bitcoin attained a market cap of $150.7 billion, while the total market cap reached $266.9 billion.
Both numbers are significantly higher than last week, and such positive indicators signal that the bull run will not stop in the near future.
Bitcoin Price: Weekly Chart
Unlike the chart from our last Bitcoin price analysis, this week’s indicators show that Bitcoin appears good and stable.
Based on what occurred last week, it was unclear what direction Bitcoin was going to take this week, as the bears looked surprisingly powerful and forced the bulls to struggle to move higher all week long.
As we saw this week, the bulls do not give up easily. They managed to gain traction in spite of the major drops we’ve seen recently, slowly but surely forming an ascending line.
Since the beginning of this week’s analysis, Bitcoin is trading around the $8,000 mark, repeatedly moving closer to the line and then falling back again.
Such a scenario is not unfamiliar, as it is a common pattern for Bitcoin to settle at a lower level just so it can catapult to a new one higher up.
Starting from last Wednesday, May 22, Bitcoin’s price was at $7,866 but kept going higher from there, reaching a price of $7,950, just below the fragile $8,000 line.
However, instead of crossing over, the price took a descending path.
On Thursday, May 23, Bitcoin dropped to $7,533, the lowest point in last week’s analysis. While this was not necessarily a major drop, it did show that Bitcoin was moving away from the $8,000 line.
On Friday, May 24, the bulls finally pushed Bitcoin over the $8,000 line and proved that they were in control this time.
Significant moves occurred during the weekend and, while it did fluctuate back and forth, Bitcoin’s price remained above the $8,000 line for the majority of the time.
By reaching the $8,000 level, Bitcoin breached the resistance from above and created a new one around $8,600.
The once primary resistance level of $8,000 now became a major support area as the king of the cryptocurrencies continued to rise.
As the weekend approached its end, the upward trend appeared to stop, but the bulls took a sharp turn for the better and placed Bitcoin above the $8,600 line.
On Monday, May 27, Bitcoin reached $8,892. This marks the highest point of this price analysis.
The bulls succeeded in breaking up the $8,400 level, hitting a new 2019 record in the process.
Although we are only five months into the year, the bulls have reached two year-to-date highs so far.
Following this success, Bitcoin established a higher resistance price and a higher, sturdier support level.
At the time of writing, the price of Bitcoin is at $8,544. For now, the bulls look strong and in control, maintaining high hopes for next week.
Only time can tell whether the experts’ predictions will prove right or wrong.
Bitcoin Price: Daily Chart
While no sizable oscillations could be spotted on Bitcoin’s weekly price chart, the daily chart depicted a different story.
The daily graph clearly points out the formation of bearish trend lines and the major struggles that occurred in the past seven days.
Even though the bulls were successful, it was not a smooth ride, as can be seen in the chart.
It is undeniable that the bears still had power, so the bulls had to fight back hard in order to get Bitcoin to its current position.
The relative strength index on the daily chart showed that after getting support around the 60 area, it is now enjoying the bullish level of 74.
The trading volume remained high, but not much of a breakout occurred.
Bitcoin Price: 4-Hour Chart
The hourly chart of the BTC/USD pair shows that there was a large bullish trendline forming near the $8,300 level.
In order to start a fresh increase, the pair must stay above that level in the near term.
The technical indicators of the hourly chart of the Bitcoin price analysis show more bearish signs than other graphs.
The hourly MACD is now gaining strength in the bearish zone, and the hourly RSI for the BTC/USD pair showed a recent decrease.
With a bearish angle, the hourly relative strength index dropped below the 40 level.
The major support levels lie at $8,425 and $8,300, with $7,800 and $7,600 below them. The major resistance levels lie at $8,600, $8,700 and $8,850.
Further up lies a resistance mark of $9,000, then $9,200 and $9,300 after that.
Following the breakout this week, another strong move can reasonably be expected in the future.
Even though the bulls struggled to put Bitcoin in the situation of reaching a new record, they likely remain optimistic that this winning pattern will continue.