Bitcoin [BTC] Price Analysis: Price Broke Down From The Symmetrical Triangle, Where to Next?

Bitcoin Price Analysis

Bitcoin [BTC] Price Analysis: Price Broke Down From The Symmetrical Triangle, Where to Next?

The price of BTC/USD touched $4225 on February 24th, before generating bearish divergence in the medium-term and breaking down. After a slight bounce on the ascending support line, price broke down again and fell to the minor support area near $3800. In the short-term, the price has struggled to retrace past the 0.382 fib line of the entire drop and recently broke down from a short-term symmetrical triangle.

Key Highlights: 

  • There is major resistance near $4400.
  • There are minor support areas near $3800 and $ 3700.
  • Price recently broke down from the ascending support line.
  • Price has made a short-term triple bottom.

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. The drop occurred with significant volume and was preceded by bearish divergence in both the RSI and the MACD.  Price enjoyed a slight bounce on the long-standing support line, but it ultimately proved unsuccessful and price broke down again shortly after. It is currently trading at $3815, inside the minor support area at $3800-$3850 where it has effectively made a triple bottom pattern. The support area coincides with the 0.5 fib line of the entire upward move. If the support area fails, the next one will be found near $3650. Conversely, the closest resistance area is found near $4000.

As for the indicators, the price is trading below the 21 and 50-period moving averages which have made a bearish cross and are offering close resistance to the price. The MACD has made a bearish cross and is falling sharply. The RSI is at 28, indicating oversold conditions.

BTC/USD – Price Analysis – 15 Minutes Chart

Bitcoin Price Analysis
Chart Source: Tradingview, Bitfinex

A look at the 15-minutes chart shows that after the drop, price bottomed at $3820 and has been struggling since to break above the 0.382 fib line which is at $3980. There is also a very significant resistance area near $4000, formed by previous support levels and the 0.5 fib line of the entire drop. After making a double bottom, the price started following an ascending support line. After 3 days and 17 hours, the price broke down from the triangle and made a triple bottom at $3815. The breakdown occurred at a very small volume. Price has formed a support area at $3800-$3830.

As for the indicators, the RSI is at 29, indicating oversold conditions. Price is trading below the 21 and 50-period moving averages which have made a bearish cross and are offering resistance to the price.

Summary
Bitcoin [BTC] Price Analysis: Price Broke Down From The Symmetrical Triangle, Where to Next?
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Bitcoin [BTC] Price Analysis: Price Broke Down From The Symmetrical Triangle, Where to Next?
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The price of BTC/USD touched $4225 on February 24th, before generating bearish divergence in the medium-term and breaking down. After a slight bounce on the ascending support line, price broke down again and fell to the minor support area near $3800. In the short-term, the price has struggled to retrace past the 0.382 fib line of the entire drop, and recently broke down from a short-term symmetrical triangle.
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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]