Bitcoin Breaks Up From Consolidation And Bucks Entire Economic Trend – Too Early To Celebrate?

19 Mar, 2020

By Yaz Sheikh

Contributor

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.

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Bitcoin saw a 6.5% price increase over the past 24 hours of trading as it tries to head back toward $6,000
The cryptocurrency recently broke above a short term consolidation pattern but must break $6,000 before we can become slightly optimistic.

Whilst the wider economy continues to tank Bitcoin is seeing some form of relief as it increases by 6.5% over the past 24 hours of trading. The cryptocurrency broke up above a short term consolidation pattern as it attempts to break above $5,600 and head back toward $6,000.

Meanwhile, major indices such as the S&P 500 and the Dow Jones Industrial Average continue to see further price declines. Even Gold dropped by a total of over 4% throughout the past 2-days of trading.

Whilst this latest price increase is promising for Bitcoin, it is still too early to become positive as Bitcoin could just be lagging behind the rest of the economy.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

Market Overview

Taking a look at the daily chart above, we can see that Bitcoin finished yesterday’s trading session at the upper boundary of the triangle. In today’s session, it went on to break above the triangle as it now tests resistance at $5,600.

Short term prediction: BEARISH/NEUTRAL

Bitcoin still has to be considered as neutral with the 50% price fall in March alone, however, this recent break above the consolidation pattern could help to turn the market neutral. A break above $6,000 would confirm this.

Toward the upside, the first level of resistance lies at $5,911 which is provided by a bearish .382 Fib Retracement. Above this, resistance is located at $6,000, $6,174, $6,540 (bearish .5 Fib Retracement), and $6,800.

Toward the downside, support lies at $5,200 and $5,000. Beneath this, support lies at $4,800, $4,577, and $4,140.

Key Levels

Support: $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436..

Resistance: $5,600, $5,911, $6,000, $6,500, $7,000, $7,200, $7,500, $7,600, $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.