Bitcoin Price Prediction: BTC on the verge of 10% technical retracement

By John Isige
Published March 31, 2021 Updated March 31, 2021
Best Buy In

Exchanges

Sportsbook

Wallet

bitcoin

Bitcoin Price Prediction: BTC on the verge of 10% technical retracement

By John Isige
Published March 31, 2021 Updated March 31, 2021
  • Bitcoin is moving toward a colossal breakdown likely to test lows under $53,000.
  • A falling wedge pattern on the four-hour chart presents a bearish outlook for BTC.

Bitcoin has for some time been stuck in a narrow range between $58,000 and $59,500. Attempts to hit highs above $60,000 have been thwarted. At the time of writing, BTC is teetering at $58,700 while facing a bearish building momentum.

advertisement

The four-hour chart shows Bitcoin trading at the apex of a rising wedge pattern. This pattern is considered bearish in technical analysis. It forms after a considerable drop in price followed by a minor recovery.

Two trend lines are used to develop the wedge, whereby one connects a series of ascending highs while the other links climbing lows. A breakdown is anticipated before the trend lines converge.

Note that an increase in volume confirms a breakdown. The downside target is usually precise and is measured from the pattern’s highest to the lowest point. For instance, the bellwether cryptocurrency is likely to slide by over 10% and revisit the lows slightly under $53,000 if the technical pattern is confirmed.

At the same time, overhead pressure is bound to increase the longer Bitcoin stays under $60,000. Moreover, a daily close beneath $58,000 may lead to more losses toward $53,000. All the applied moving averages, including the 50 Simple Moving Average (SMA), the 100 SMA and the 200 SMA, are in line to cushion BTC from the massive drop.

BTC/USD four-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the upside, the Moving Average Convergence Divergence (MACD) shows that the trend is still in the bulls’ hands. The MACD line (blue) holds above the signal line at the time of writing. If the indicator remains in the same position, Bitcoin may trade between $58,000 and $59,500 much longer.

Bitcoin intraday levels

Spot rate: $58,700

Trend: Bearish

Volatility: Low

Support: $58,000, $55,000 and $52,500

Resistance: $59,500, $60,000 and $62,000

advertisement
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1115 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Loading Next Story