Self-esteem relation to happiness?

My self-esteem and entire self-image goes up and down all the time.

I´ve noticed that I often feel better about myself, when I´m not depressed
and naturally worse when depressed.

However, I´ve also noticed how viewing myself in a positive way and thinking I´m capable and full of potential lifts my mood immensely.

So how do you think it´s connected?
Do I feel bad and then feel bad about myself or do I feel bad about me and that´s why I´m depressed
and how can self.esteem uplift depression or is the only way to be less depressed for more self.esteem... confused!

Things like self-confidence, self-esteem, self-concept are going to be variable depending upon our moods and circumstances. There is a sort of "average level" each person has, but it isn't an absolute constant moment to moment.

There's a defiant correlation there. When I'm feeling bad about myself for whatever reason everything suffers and I just lose motivation to really do anything. When I go through those self esteem issues, I notice I'm more closed off around my family, i'm not productive at my work, my outer appearance suffers and all rationale of positivity in the world just goes out the window for those moments. The only way to really stop that is to consciously and actively do things to combat those negative thoughts long enough for me to get on with the day.