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 $3700. Since then, it has been trading inside a parallel ascending channel, with multiple attempts at a breakout above $4000. While it has traded above that level for short periods of time, no candle close has been reached yet. The price has generated medium and short-term bearish divergence in both the RSI and the MACD. Also, it is trading above the medium-term moving averages.
- 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 parallel channel
- There is medium and short-term bearish divergence.
- The price is trading above short and medium-term moving averages.
Bitcoin Price Analysis – BTC/USD – 2 Hours Chart
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 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 14 days, it has been trading inside a parallel ascending l channel.
As for the indicators, the price is trading above both the 21 and 50-period MA which has made a bullish cross, finding close support from the 21-period MA. It is also trading inside the $4000 resistance area. Since the March 5 high, 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. It is currently in the process of making or rejecting a bearish cross. Similarly, the RSI has developed significant bearish divergence since March 5 high.
BTC/USD – Price Analysis – 30 Minutes Chart
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 created an ascending support line which was validated again on March 9. It has several unsuccessful attempts at breaking out above $4000, and tracing these highs created the horizontal channel.
As for the indicators, the RSI has both created bearish divergence since the March 5 high. 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. Finally, the price is trading above the 21 and 50-period moving averages, which are in the process of making a bullish cross.
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