- BTC/USD embarked on a bullish journey earlier in the week where it traded new 2019 highs.
- BTC/USD is likely to climb above various bullish weekly closes for the first time since March.
The cryptocurrency market has just gone through a trying week following increased volatility levels. BTC/USD embarked on a bullish journey earlier in the week where it traded new 2019 highs. However, the trend was unsustainable leading to a sharp correction. Towards the end of the week, Bitcoin price is almost unchanged slightly below $5,200 amid broad-based bearish moves affecting most of the major altcoins.
BTC/USD daily chart
BTC/USD zoomed above several resistance levels to form a new high around $5,632. The price did not, however, sustain the steam as the price plunged under $5,000. The trend in the market suggests that the +$600 range is nothing compared to the performance of the crypto in December 2017 and January 2018 but it is massive in comparison current volatility levels shown in 2019.
Unless something happens over this weekend session, BTC/USD is likely to climb above various bullish weekly closes for the first time since March started, a move that would bring more sorrow to the investors. Meanwhile, investors are looking forward to the crypto spring season in the wake of the elongated crypto ‘winter.’ However, spring doesn’t always come fast which means that the universe will experience the number of frosty days just before the weather starts to warm up again.
Looking at the pair BTC/USD just broke below short-term ascending channel support. This is not a good move for the crypto but it will not be the end of the world. We could see a dive towards $4,600 and further down at DMA 50 ($4,570). If this level is cleared, expect the price to dip to lows close to $4,470 (DMA 200) before a correction ensues. Similarly, the golden cross pattern on the chart indicates that BTC/USD has a long-term bullish bias.
On the hand, the relative strength index (RSI) in the weekly and daily ranges is averaging in a neutral zone to show that the upside correction will be dragged.
Bitcoin Key Technical Indicators:
DMA 50: $4570
DMA 200: $4,470
Support 1: $5,100
Support 2: $5000
Support 3: $4,800
Resistance 1: $5,200
Resistance 2: $5,400
Resistance 3: $5,632
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige