BTC Price Prediction: Will the 4% Drop in Bitcoin Price Lead to Further Correction?

BTC Price Prediction: After March’s third-week aggressive rally, the Bitcoin price showed a more steady growth under the influence of two rising trendlines. The coin price resonating between these trendlines for nearly a month shows the formation of an ascending channel pattern. With today’s 4% intraday drop, the BTC price is back to the channel pattern’s support trendline. Will buyers resume the bullish recovery from here or its time for sellers to take control?

Key Points

• A rising channel pattern gives specific direction to the Bitcoin recovery rally
• A potential reversal from the support trendline could surge the Bitcoin price by 8-10%
• The intraday trading volume in Bitcoin is $23.2 Billion, indicating a 28% gain

Source-Tradingview

In the daily time frame chart, the Bitcoin price shows the formation of a rising channel pattern. The coin price bounced back from the pattern’s resistance trendline indicating the traders are reacting to this setup and thus it may significantly influence Bitcoin’s near future price.

As of now, the BTC price trades at the $29428 mark, and with the current correction, it retests the channel’s support trendline. The below-average trading volume hints the pullback is temporary and the prices are more likely to rise again.

Also Read: Crypto Market Selloff: Here’s Why Bitcoin, Ethereum Price Are Falling Sharply

If the buyers sustain above the resistance trendline, the coin price may rise 8-10% to retest the resistance trendline. Thus, until the pattern is intact, the Bitcoin price continues its recovery rally.

While things are bullish for BTC, a breakdown below the trendline will tumble the bullish thesis.

Technical Indicator

RSI: Contrary to the rising prices, the daily RSI slope formed the same tops indicating the buying pressure diminishing and the sellers may eventually breach the lower trendline. 

EMAs: along with the pattern’s support trendline, the 20-day EMA offers additional support to maintain the price rally.

Bitcoin Price Intraday Levels

• Spot rate: $29380
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $32500 and $35000
• Support levels- $29100 and $26600