Bitcoin [BTC] Price Analysis: Will We Finally Break Out Above $4000?

Bitcoin price analysis
Chart Source: Tradingview

Bitcoin [BTC] Price Analysis: Will We Finally Break Out Above $4000?

The price of BTC/USD touched $4225 on February 24th, before generating bearish divergence in the RSI and swiftly breaking down. While it initially rebounded on the ascending support line, the rebound proved to be insignificant, and another breakdown ensued. Price created a support area near $3800, and after a period of consolidation, started an upward move that took it back to $4000, where it met resistance. It has developed short-term bearish divergence in both the RSI and the MACD. It is currently trading at $3945.

Key Highlights:

  • There is major resistance near $4400 and minor resistance near $4000
  • There are minor support areas near $3800 and $ 3700.
  • The price is trading above the short and medium-term moving averages.
  • There is short-term bearish divergence.

Bitcoin Price Analysis – BTC/USD – 4 Hours Chart

Bitcoin Price Analysis
Chart Source: Tradingview, Bitfinex

A look at the 4-hour chart shows us that after touching $4250, the price dropped sharply through a massive bearish engulfing candle on significant volume. The drop was preceded by bearish divergence in both the RSI and the MACD.  Price enjoyed an ultimately unsuccessful bounce, before ultimately breaking down to the support area near $3800, which coincides with the 200-period moving average. It finally launched an upward move on March 5, which took it near $4000, where it is currently trading.

As for the indicators, the price recently moved above the 21 and 50-period averages, which are close to making a bullish cross. The price is facing resistance from the negative Ichimoku Cloud. The MACD has made a bullish cross and is moving upward, finally moving into positive territory. The RSI is at 66, moving upward with strength. It is worth noting that the RSI is higher than the previous time’s price was at this level, indicating strength from the buyers.

BTC/USD – Price Analysis – 30 Minutes Chart

Bitcoin Price Analysis
Chart Source: Tradingview, Bitfinex

A look at the 30-minutes chart shows that after the drop, price bottomed at $3800 and followed a descending support line for roughly 9 days. It has made four unsuccessful attempts at breaking out above $3990. Also, the current 30-minute candle is shaping up to be a bearish inverted hammer.

As for the indicators, the RSI was at 87 for a short period, indicating overbought conditions. However, while price reached a higher high on Mar 6, the RSI did not, creating bearish divergence. The bearish divergence has also occurred on the MACD, which has made a bearish cross.

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Bitcoin [BTC] Price Analysis: Will we finally break out above $4000?
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Bitcoin [BTC] Price Analysis: Will we finally break out above $4000?
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The price of BTC/USD touched $4225 on February 24th, before generating bearish divergence in the RSI and swiftly breaking down. While it initially rebounded on the ascending support line, the rebound proved to be insignificant, and another breakdown ensued. Price created a support area near $3800, and after a period of consolidation, started an upward move that took it back to $4000, where it met resistance. It has developed short-term bearish divergence in both the RSI and the MACD.
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Valdrin Tahiri 35 Articles

Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]