During the week of February 24 to March 1, Bitcoin dropped from $ 9,985 to $ 8,556, down about 15%. The pattern has completed sinking weekly bearish candles.
Highlights of Bitcoin price
- Bitcoin has completed its weekly bearish sinking candle.
- Price is trading below the 200-day moving average (MA).
- There is support at $ 8,300 and $ 7,800.
- Prices are trading in the range of $ 8,550 – $ 8,975.
- The price broke out of the short-term descending resistance line.
Bitcoin engulfed candle
For the week of February 24 to March 1, the price of Bitcoin has created a bearish engulfing candle larger than any kind since the end of November 2019. But that comes with significant volume and this is not unusual.
Currently, the price has nearly reached the small support area of $ 8,400, with the next level being found at $ 7,700. The resistance is at $ 10,500.
The weekly RSI is at 50 and a move above or below this line may indicate a trend. Therefore, based on the weekly chart, Bitcoin price volatility is currently at a very important fork.
On February 29, Bitcoin price fell below the 200-day MA. In addition, the price closed lower for 5 days.
After creating the Doji candle on March 1, Bitcoin has gradually increased. The uptrend is still ongoing and closing above the 200-day MA will show that the BTC has an upward trend. However, until that happens, the current trend is considered down, at least in the daily time frame.
Therefore, on the weekly and daily time frames, the price is approaching strong weekly support. This threshold can spark a reversal. Besides, the daily chart shows that the current trend is bearish because the price has dropped below the 200-day MA and created some lower closes. However, yesterday and today (ongoing) candles confirmed that prices may begin to reverse.
In the short term, trading prices range from $ 8,550 – $ 8,975.
Although it has dropped 2 times below the support of the range, BTC moved up immediately. This is a sign of strength and the price wants to rise.
Moreover, it has just broken out of the descending resistance and can confirm support.
Technical indicators provide an interesting picture showing that prices may want to rise.
Since the range began, the hourly RSI has moved above 50 only twice, at the end of February 28 and today.
On February 28, the price has not broken out of the descending resistance. Also, despite moving above the 50-hour MA, Bitcoin has dropped below the next hourly candle.
In the current move, the price has broken out of the descending resistance line. Also, it rose above the 50-hour MA and did not fall below in the 5-hour candle.
Therefore, this is considered a sign of strength and the price may want to move up to the top of the range.
In a nutshell, Bitcoin has reached the area where reversal could begin. The current daily candle shows price is about to reverse and short-term chart to form a breakout. Price is expected to move upwards to a high of $ 8,975.
You can see the price of bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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