Bitcoin [BTC] Price on Life-Line Support from Long-Term Bullish Trend

Published March 9, 2020 | Updated March 9, 2020

Bitcoin
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Bitcoin [BTC] Price on Life-Line Support from Long-Term Bullish Trend

Bitcoin [BTC] price drops heavily on Sunday testing lows at $778x. Despite the growth of the Coronavirus and halving rhetoric, the sell-off in Bitcoin is now threatening an end to the bull run.

The price have reaches at the confluence of the long-term trend-line it has been holding since 2017. Derivatives and crypto traders, Tone Vays tweeted on the price action,

Finally we have #Bitcoin, all bearish targets are back on the table with a Weekly Red 2 under Red 1 while breaking short & intermediate Moving Averages on Weekly Charts. $BTC has never fallen under 200 Week SMA

Moreover, in a bull market, BTC has not broken below support from the 200-Day SMA for long. This got broken yesterday at $8673. The 200-Period Weekly Moving Average is currently at $5900, which will the last stand from the bulls.

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BTC/USD 1-Week Chart on Bitstamp (TradingView)

Previously, when Bitcoin [BTC] price fell to test the bottom of the trend-line, bearish sentiments spread across the market. However, the bulls kept support above it with quick bullish buy-backs which led to the short-term bulls in 2020.

Furthermore, the LucidSAR indicator on the weekly is also converging around the trend-line support at $7995. As mentioned earlier, on longer time-frames, the swing low around $6500 will the penultimate stand for the bulls.

$875 CME Gap

CME records one of the largest gaps since the Xi-pump in October last year. However, the last one opened about $1000 higher. Whereas, the current one logs an $875 (9.5%) gap which is expected to be filled.

btc futures cme daily
BTC Futures CME Daily Chart (TradingView)

Popular crypto trader, XC tweeted,

Looking like a 10% gap is in store for us here at the CME Open, place your bets on whether it will be filled. $BTC

According to rudimentary research, it has been shown that CME gaps have a high probability of being filled in the same week. However, since the gap is massive, the chances of reaching $9150 this week reduces.

With global economy already holding onto a thin thread, the deadly virus has stretched the world to the limits of a recession. The stock and commodities (oil, gold) market is witnessing massive swings as global trade gets affected. The test for Bitcoin as a safe haven, or an uncorrelated asset – weak or strong is coming through hard.

Do you think Bitcoin can uphold the safe-haven rhetoric during times of social and economic distress? Please share your views with us. 

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
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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