The price of Bitcoin reached $4225 on February 24th, before creating bearish divergence and breaking down. The price is currently trading below the short-term moving averages which have made a bearish cross. In very short timeframes, the price is following an ascending support line since bottoming out at $3815 and has been trading inside a symmetrical triangle for roughly the past 19 hours.
- There is major resistance near $4400.
- There are minor support areas near $3800 and $ 3700.
- Price is trading inside a short-term symmetrical triangle
- There is a very short-term bullish divergence in both the RSI and the MACD
Bitcoin Price Analysis – BTC/USD – 4-Hours Chart
A look at the 4-hour chart shows us that after reaching $4250, price broke down and formed a bearish engulfing candle. The breakdown was preceded by bearish divergence in both the RSI and the MACD. After the breakdown, price bounced at the support line that has been in place for a little less than 20 days and is currently trading slightly above the minor support area at $3800 which coincides with the 0.5 fib line of the entire drop. If the support line fails, the next one will be found near $3680.
As for the indicators, the price is trading below the 21 and 50-period moving averages which have made a bearish cross (yellow arrow). On a more positive note, the volume on the decreases of the MACD is diminishing considerably, even though we are still in negative territory.
Bitcoin Price Analysis – BTC/USD – 15-Minutes Chart
A look at the 15-minutes chart shows that after the drop from $4210, price bottomed at $3815 and started following an ascending support line. The support line has been in place for roughly one day and 21 hours. Furthermore, we can see that a trading structure has developed. Price is currently trading at $3915, possibly breaking out of the symmetrical triangle.
If the breakout continues, the price can face resistance in the following areas:
$3966 – The creation of a double top, coinciding with the 0.382 fib line of the entire drop.
$4013 – Previous support and the 0.5 fib line of the entire drop
$4126 – 0.618 fib line of the entire drop
$4210 – Double top from the start of the drop
As for the indicators, there is a bullish divergence in both the RSI and the MACD. However, it is worth noting that the divergence is only visible in very short-term timeframes up until the 1-hour chart.