Bitcoin price analysis: Recovery fizzles out into a bull flag pattern

The cryptocurrency market is mostly in the red. However, there are selected digital assets among the top 20 that are dancing in the green such as Ethereum (ETH), which is up a subtle 0.2% and Bitcoin Cash (BCH), which is up 0.62%. Bitcoin price is still in the red in spite the brief new year recovery that had it from the low formed at $3,645.

The $66 billion cryptocurrency is recording a trading volume of about $4.3 billion in the last 24 hours. The volume has been reducing in the past 7 days, although it has stayed above $4 billion. Moreover, the market has shown the same trend as it has been deflating in the same period from $71 billion (weekly high) to $65 billion (weekly low). The assets dominance in the market according to the data on CoinMarketCap has been losing ground to stand at the current 51.6%. This means that altcoins are increasing in value significantly in comparison to Bitcoin.

Meanwhile, the above mentioned recover made it past both the 50 SMA and the 100 SMA in the 15-minutes time range. There was a snarl around $3,720 but a break above this level ignited further gains in an engulfing candle. The price zoomed past $3,800 but failed to reach $3,900. The bears found a leeway and pushed for correction.

At present, Bitcoin is settling in a bullish flag pattern pending a breakout that could have it reclaimed its position above $4,000. BTC/USD is dancing with $3,796 while indicators on the same chart send positive signals. The RSI is maintaining levels close to the overbought regions, on the other hand, the MACD is showing high levels around +29. A breakout is imminent if is a reverse occurs there is a short-term support at $3,780, a second support at $3,720 and a stronger support at the recent lows around $3,645.