This week has not been very eventful when it comes to Bitcoin’s price, which has failed to make a new all-time high (ATH) above $60,000. After breaking out above $58,000, certain negative news have hindered the price from making positive movements. For instance, the general macroeconomic weakness, the rebounding U.S. dollar and negative news from India contributed to the week’s events.
All these resulted to a decline in price which went as low as $53,000 on March 16. However, for the current bull market, the pullbacks are normal and the market is expected to find a new equilibrium of buyers and sellers, after which a new path will be formed.
Regardless of the current market dynamics, the market has been in an upward trend. In just six months, the price of Bitcoin has gone from $11,000 to $60,000.
A 4-hour chart from TradingView shows that there was support at $53,000, which kept holding. The subsequent continuation upward is seen on the 4-hour chart of bitcoin. Which met the next big resistance at $58,800-$60,000. This is said to the last resistance level before the next impulse wave towards $68,000.
This resistance zone was tested yesterday and the price failed to break through, pushing it back to its previous range. The top of the range is $58,800-$60,000 while the bottom support area is around $54,000-$55,000 and $53,000.
The pressure to break this level might lead to an upward surge, but will only happen if Bitcoin stays within this range.
The daily chart for BTC/USD shows a strong uptrend confirmed through higher lows and higher highs. The recent low was created at $42,000 hence, any price above it means that the bull market is fine.
The RSI indicator although still invalid shows a bearish divergence which will be valid once previous resistance zones turn into resistances again and once Bitcoin’s price begins making lower lows. Therefore, the new higher low region will be around $50,000, which is still safe and the final anchor of support is at $42,000 and the 21-Week MA. As long as Bitcoin maintains price above these figures, the uptrend should continue, taking it all the way to $68,000, which is the next Fibonacci level to watch.
The potential Bitcoin’s price scenario is a further sideways action as BTC/USD compresses. In order for this to happen, the market will have to retest the former support and resistance levels of the current range. After, consolidation will be over, making way for a new impulse wave. In such a case, the $60,000 barrier can be a resistance for a period, and a $55,000 region retest is possible as long as $60,000 acts as resistance. Holding the $55,000 support level opens possibilities for $68,000 to be the next interest point.
Image courtesy of pixabay
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