Bitcoin [BTC] Price Analysis – Price Reached The Resistance Of The Horizontal Channel

BTC Price Analysis
Source: TradingView

Bitcoin [BTC] Price Analysis – Price Reached The Resistance Of The Horizontal Channel

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. While it initially tried to rebound, that proved unsuccessful and the price made a bottom near $3750. Since then, it has been trading inside a parallel ascending channel, with multiple attempts at a breakout above $4050.  This movement has been going on for the past 13 days and 20 hours. 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 and the Positive Ichimoku Cloud. There are short-term signs that price might want to start a downtrend.

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 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

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 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 and starting an upward move. This movement has been going on for 14 days.

As for the indicators, the price is trading between  the 21 and 50-period MA which have made a bullish cross, finding close support from the 50-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, almost falling into negative.  Similarly, the RSI has developed significant bearish divergence since the March 5 high and is currently trading at 51/

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 created an ascending support line which was validated again by a wick drop on March 9. It has several unsuccessful attempts at breaking out above $4050, and has traded in an ascending horizontal channels.

As for the indicators, the RSI and the MACD have both created bearish divergence since the March 5 high. This divergence has occurred at the six highs reached by the price. The bearish divergence has also occurred on the MACD, which is into negative territory.The divergence has continued for four days, reaching very significant levels. Also, the price is trading below the 21 and 50-period moving averages which have made a bullish cross.

 

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Bitcoin [BTC] Price Analysis - Price Reached The Resistance Of The Horizontal Channel
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Bitcoin [BTC] Price Analysis - Price Reached The Resistance Of The Horizontal Channel
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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. While it initially tried to rebound, that proved unsuccessful and the price made a bottom near $3750. Since then, it has been trading inside a parallel ascending channel, with multiple attempts at a breakout above $4050.  This movement has been going on for the past 13 days and 20 hours. 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 and the Positive Ichimoku Cloud. There are short-term signs that price might want to start a downtrend.
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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]