Bitcoin [BTC] Price Analysis for March 12: The Price Is Trading Inside A Short-Term Wedge


Bitcoin Price Analysis
Chart Source: TradingView

Bitcoin [BTC] Price Analysis for March 12: The Price Is Trading Inside A Short-Term Wedge

The price of BTC/USD reached a high of $4225 on February 24th, before generating bearish divergence in the RSI and the MACD and sharply breaking down. It initially made an unsuccessful attempt at a rebound and then proceeded to make a bottom near $3750.This movement has been going on for the past 15 days and 20 hours and price has not broken out above $4100.

Key Highlights:

  • There is major resistance near $4400 and minor resistance near $4000
  • There are minor support areas near $3800 and $ 3650.
  • The price is trading inside an ascending l channel
  • There is medium and short-term bearish divergence.
  • The price is trading above short and medium-term moving averages which are close to making a bullish cross.

The price has generated medium and short-term bearish divergence in both the RSI and the MACD. Also, it is trading below the medium-term moving averages which have made a bearish cross and are offering resistance to the price and the positive Ichimoku Cloud. There are short-term signs that price might want to start a new uptrend.

Bitcoin Price Analysis – BTC/USD – 2 Hours Chart

Bitcoin Price Analysis

Chart Source: Tradingview, Bitfinex

A look at the 2-hour chart shows us that after briefly trading at $4250, the price dropped sharply through a massive bearish engulfing candle which occurred at 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 and starting an upward move. This movement has been going on for 15 days and 20 hours.

As for the indicators, the price is trading below the 21 and 50-period MA which have made a bearish cross and are offering very close resistance to the price. , finding close support from the 50-period MA. Since the March 5 high, there is bearish divergence occurring in the MACD and in its histogram, This has possibly led to the short-term downtrend. Furthermore, it has made a bearish cross and is dropping, currently being in negative territory.  Similarly, the RSI has developed significant bearish divergence since the March 5 high and is currently trading at 53.

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 $3780 and created a support area near it. Since the bottom, it has been trading inside a descending wedge for the past two days. It is currently trading very close to the resistance line of the wedge.

As for the indicators, the RSI and the MACD have both created bearish divergence since the March 5 high. However, the MACD has made a bullish cross and is currently in positive territory.. Also, the price is trading above the 21 and 50-period moving averages which are very close to making a bullish cross.

Summary
Bitcoin [BTC] Price Analysis for March 12: The Price Is Trading Inside A Short-Term Wedge
Article Name
Bitcoin [BTC] Price Analysis for March 12: The Price Is Trading Inside A Short-Term Wedge
Description
The price of BTC/USD reached a high of $4225 on February 24th, before generating bearish divergence in the RSI and the MACD and sharply breaking down. It initially made an unsuccessful attempt at a rebound and then proceeded to make a bottom near $3750.This movement has been going on for the past 15 days and 20 hours and price has not broken out above $4100. The price has generated medium and short-term bearish divergence in both the RSI and the MACD. Also, it is trading below the medium-term moving averages which have made a bearish cross and are offering resistance to the price and the positive Ichimoku Cloud. There are short-term signs that price might want to start a new uptrend.
Author
Publisher Name
Coingape
Publisher Logo
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.
Author: Sunil Sharma

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

Post your comment...
Sunil Sharma 68 Articles

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

Follow Sunil @