Bitcoin Price Analysis: The Third Attempt At Breaking Out Above $3980 Was Unsuccessful, Is a Triple Bottom In Store?

Bitcoin Price Analysis
Chart Source: TradingView, bitfinex

Bitcoin Price Analysis: The Third Attempt At Breaking Out Above $3980 Was Unsuccessful, Is a Triple Bottom In Store?

The price of BTC/USD traded at $4225 on February 24th, before generating bearish divergence in the medium-term and breaking down. Price currently has found support above the long-term moving average and the short-term MAs have made a bullish cross.  Price has been following the ascending support line for roughly the past 23 days. Since the drop, it has struggled to retrace above the 0.382 fib line at $3980.

Key Highlights:

  • There is major resistance near $4400.
  • Price is following an ascending support line currently at $3930.
  • There are minor support areas near $3800 and $ 3700.
  • There is short-term significant resistance at the 0.5 fib line at $4000.

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 touching $4250, price broke down and generated a bearish candle with substantial volume. The breakdown was preceded by bearish divergence in both the RSI and the MACD, the former being in overbought territory. After the drop, the price fell all the way to the ascending support line that has been in place for roughly 22 days. It is currently trading at $3925. I am choosing to ignore the flash-crash below the line since most of it is a wick and price resumed normal trading shortly thereafter. In a highly volatile market, these things are likely to happen.

As for the indicators, the price has found support above the 21 and 50-period moving averages which have made a bullish cross he price is trading slightly above the 21-period moving average, which is getting ready to make a bullish cross with the 50-period MA (Arrow pointing left). The RSI is at 51, indicating neither overbought nor oversold conditions and there is no divergence. Finally, the MACD briefly traded into positive territory and is setting up for an upward move.

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, the price has been struggling to break above the 0.382 fib line which is at $3980, even though it has been trying for the past 4 days and 20 hours. There is significant resistance at $4000, formed by previous support and the 0.5 fib line. While price is not following a support line, it has created a support area near $3880.

Price unsuccessfully tried to break out of the resistance line at $3974 for the third time. The most recent attempt was combined with a bearish divergence in the RSI and a swift pullback to $3880 ensued.  If price breaks down from the support area, the next one will be found near $3830, which would make it a triple bottom scenario.

As for the indicators, the RSI is at 55, after trading above 70 (overbought) for a short period of time.

Summary
Bitcoin Price Analysis: The Third Attempt At Breaking Out Above $3980 Was Unsuccessful, Is a Triple Bottom In Store?
Article Name
Bitcoin Price Analysis: The Third Attempt At Breaking Out Above $3980 Was Unsuccessful, Is a Triple Bottom In Store?
Description
The price of BTC/USD traded at $4225 on February 24th, before generating bearish divergence in the medium-term and breaking down. Price currently has found support above the long-term moving average and the short-term MAs have made a bullish cross.  Price has been following the ascending support line for roughly the past 23 days. Since the drop, it has struggled to retrace above the 0.382 fib line at $3980.
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Author: Valdrin Tahiri

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]

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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]