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.
- 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 below the short and medium-term moving averages.
- The price is right on the support line
It is currently on the edge of the support line, a breakdown being very close. This movement has been going on for the past 14 days and 20 hours. The price has generated medium and short-term bearish divergence in both the RSI and the MACD. Furthermore, is trading below the medium-term moving averages and inside Ichimoku Cloud. There are short-term signs that price has already started a downtrend.
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 and starting an upward move. It is currently trading on the lower edge of an ascending parallel channel, which is a neutral pattern. This movement has been going on for roughly 15 days.
As for the indicators, the price is trading below the 21 and 50-period MA which have made a bearish cross.. Since the March 5 high, there is bearish divergence developing in the MACD and in its histogram. Furthermore, it has made a bearish cross and is dropping, finally falling into negative territory. Similarly, the RSI has developed significant bearish divergence since the March 5 high and is currently trading at 38, close to oversold conditions.
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 by a wicked drop on March 9 and recently on March 11. It has made several unsuccessful attempts at breaking out above $4050 and has traded in an ascending parallel channel.
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 very deep into negative territory. The divergence has continued for five days, reaching very significant levels. Also, the price is trading below the 21 and 50-period moving averages which have made a bearish cross. Currently, the price is barely finding holding on above the support line.
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