Bitcoin Price Analysis: Will The Price Break Out Above The 0.382 Fib Line And Reach $4000?


bitcoin price analysis
Source: TradingView, Bitfinex

Bitcoin Price Analysis: Will The Price Break Out Above The 0.382 Fib Line And Reach $4000?

The price of BTC/USD reached $4225 on February 24th, before creating bearish divergence in the medium-term and breaking down. The price is currently trading online with the short-term moving averages which have made a bearish cross. After the drop, the price has been struggling to break out of the 0.382 fib line for the past 2 days and 22 hours. It has currently formed a very short-term support area at $3880-$3900.

Key Highlights:

  • There is major resistance near $4400.
  • 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 reaching $4250, price broke down and formed a bearish engulfing candle with very significant volume. The breakdown was preceded by bearish divergence in both the RSI and the MACD. After the breakdown, price bounced on the support line that has been in place for 21 days and is currently trading at $3924, slightly above the support line. If the support line fails, the subsequent support area will be found near $3700. The 2-hour candles since the drop have been quite small, the trading range is from $3800 to $3950, a change of 4%.

As for the indicators, the price is trading in line with the 21-period moving average, slightly below the 50-period MA and the Ichimoku Cloud. The 21 and 50-period moving averages have made a bearish cross (black arrow). The RSI is at 50, indicating neither overbought nor oversold conditions and there is no divergence. On a more positive note, the MACD has made a bullish cross and is moving upward with strength, but is not positive yet.

BTC/USD – Price Analysis – 15 Minutes Chart 

A look at the 15-minutes chart shows that after the drop from $4200, price bottomed out at $3837 before launching an upward move. It initially got rejected by the 0.382 fib line of the entire drop at $3950, before breaking out of the resistance line and validating it (black arrow). While there is no observable support line that price is following, it has created a support area at $3880-$3900. The current move since the double bottom has lasted for two days and 21 hours.

Bitcoin price analysis
Chart Source: Tradingview, Bitfinex

As for the indicators, there is a very small amount (usually insignificant) of bearish divergence currently developing. If price breaks out above the 0.382 fib line, the next major resistance area is at $4000, formed by previous bottoms and coinciding with the 0.5 fib line of the entire drop.

Summary
Bitcoin Price Analysis: Will The Price Break Out Above The 0.382 Fib Line And Reach $4000?
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Bitcoin Price Analysis: Will The Price Break Out Above The 0.382 Fib Line And Reach $4000?
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The price of BTC/USD reached $4225 on February 24th, before creating bearish divergence in the medium-term and breaking down. The price is currently trading online with the short-term moving averages which have made a bearish cross. After the drop, the price has been struggling to break out of the 0.382 fib line for the past 2 days and 22 hours. It has currently formed a very short-term support area at $3880-$3900.
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Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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]