Bitcoin [BTC] Price Analysis: Is this the Beginning of An Upward Move?

Bitcoin Price Analysis
Source: TradingView

Bitcoin [BTC] Price Analysis: Is this the Beginning of An Upward Move?

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. After consolidating for a short period, the price is in the process of generating a massive bullish engulfing candle and moving pas the short and medium-term moving averages.

Key Highlights:

  • There is major resistance near $4400.
  • There are minor support areas near $3800 and $ 3700.
  • The price is trading above the short and medium-term moving averages.

 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. After consolidating for a short period near $3800, the price formed a bullish engulfing candle, which moved it past the 21 and 50-period moving averages.

Also Read: Binance Coin [BNB] Price Analysis: A Confirmed Breakout Materialized

As for the indicators, the price just moved above the 21 and 50-period averages, which have not yet made a bullish cross. The MACD has made a bullish cross and is moving upward, but is not positive yet. The RSI is at 63, moving upward with strength. It is worth noting that the RSI is higher than the previous time’s price was at this level, indicating strength from the buyers.

 Bitcoin Price Analysis – BTC/USD – 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 $3800 and consolidated for a short period. However, after above the short-term moving averages, it started a significant upward move which is currently in progress. The move has been combined with extreme volume (blue arrow)

As for the indicators, the RSI is at 83, indicating overbought conditions, but there is no bearish divergence yet. Furthermore, the price is trading above the 21 and 50-period moving averages which have made a bullish cross and are offering support to the price.

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Bitcoin [BTC] Price Analysis: Is this the beginning of an upward move?
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Bitcoin [BTC] Price Analysis: Is this the beginning of an upward move?
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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. After consolidating for a short period, the price is in the process of generating a massive bullish engulfing candle and moving pas the short and medium-term moving averages
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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]