Bitcoin [BTC] Price Analysis: Will BTC Break out of the $4000 resistance?

Bitcoin price Analysis

Bitcoin [BTC] Price Analysis: Will BTC Break out of the $4000 resistance?

The price of BTC/USD touched $4225 on February 24th, before generating bearish divergence in the RSI and the MACD and sharply breaking down. While it initially tried to rebound, that proved unsuccessful and the price made a bottom near $3650. Since then, it has been trading inside a horizontal channel. While it has made four attempts at breaking out above $3950, they all proved to be futile. The price has generated medium and short-term bearish divergence in both the RSI and the MACD.

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 a horizontal channel
  • There is medium and short-term bearish divergence.
  • The price is following a short-term ascending support line

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 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. For the past 13 days, it has been trading inside a horizontal channel.

As for the indicators, the price is trading above both the 21 and 50-period MA, finding close support from the 21-period MA. There is bearish divergence occurring in the MACD and in its histogram. Furthermore, it has made a bearish cross and is dropping, but is not negative yet. Similarly, the RSI has developed significant bearish divergence.

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 created a support area near $3650. It has made six unsuccessful attempts at breaking out above $4000, with a wick breakout being the only successful one. It is possibly creating an ascending support line, which however has only been validated twice. This movement has been going on for roughly 13 days.

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. This divergence has occurred at five subsequent highs. The bearish divergence has also occurred on the MACD, which has made a bearish cross. The divergence has continued for four days, reaching very significant levels.

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Bitcoin [BTC] Price Analysis : Will BTC Break out of the $4000 resistance?
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Bitcoin [BTC] Price Analysis : Will BTC Break out of the $4000 resistance?
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The price of BTC/USD touched $4225 on February 24th, before generating bearish divergence in the RSI and the MACD and sharply breaking down. While it initially tried to rebound, that proved unsuccessful and the price made a bottom near $3650. Since then, it has been trading inside a horizontal channel. While it has made four attempts at breaking out above $3950, they all proved to be futile. The price has generated medium and short-term bearish divergence in both the RSI and the MACD.
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Valdrin Tahiri 37 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]