- Bitcoin has been trading sideways for the past 24 hours
- Bulls have been unable to break above the 12-period EMA on the 4-hour chart
- Bitcoin could break above $6,000 if coronavirus fears start fading away
|⠀Key BTC resistance levels:||$5,699, $5,955, $6,000|
|Key BTC support levels:||$5,055, $4,807, $3,782|
*Price at the time of writing
Bitcoin has seen a pretty significant bounce after hitting a temporary bottom at $3,782. The bulls are now looking for more continuation as they are worried about a ‘dead cat bounce’. Bitcoin bull breaks have been rejected several times and traders need to be very careful with bullish entries.
Bitcoin Technical Analysis
What has been going on?
After the huge crypto market collapse, Bitcoin had a 56% bounce up to $5,955 before dropping down again. Bitcoin’s market dominance has not increased, however, and it’s currently sitting at 53%.
There are a significant amount of oversold Bitcoin metrics and indicators present, unfortunately, the fear and pressure from the entire global economy have led Bitcoin and the crypto market to collapse.
Not everyone believes Bitcoin is dead, Edward Snowden, American whistleblower, has recently stated that he is interested in buying Bitcoin because the drop was ‘too much panic and too little reason’
This is the first time in a while I’ve felt like buying bitcoin. That drop was too much panic and too little reason.
— Edward Snowden (@Snowden) March 13, 2020
BTC price short-term prediction: Bearish/Neutral
Right now the only time frame that has some clarity is the 4-hour chart. Bitcoin has kind of set a 4-hour uptrend right now but has been trading sideways for a while. The bulls are currently trying to hold and confirm a higher low at $5,055.
They would need to break the high of $5,955 and the psychological resistance at $6,000 to continue with the 4-hour uptrend. Unfortunately, the bulls haven’t been able to break above the 12-period EMA and were rejected once already.
The RSI continues to be oversold but it’s not really helping the bulls. Trading volume has been dropping significantly for the past 24 hours which might indicate a big move is coming soon.
Where is the resistance towards the upside
In the longer time frames, Bitcoin is not necessarily facing a lot of resistance because the bears were not able to set resistances on the way down. The crash was sudden and violent which means there is not a lot of resistance.
The bulls are facing resistance in the short term at $5,431, the current 4-hour 12-period EMA and at $5,699 and $5,955. If the bulls can break above $6,000, there is basically no resistance until $8,000 other than $7,000 and daily EMAs.
What are the technical indicators showing?
Most technical indicators indicate that Bitcoin is currently oversold but as we have stated above, in times of extreme fear, indicators are not as useful and bulls should be really cautious. The RSI has been overextended in most time frames and continues to be only at 25 points on the daily chart.
The MACD and the VWMA both indicate traders to sell on the daily time frame. On a shorter time frame like the 4-hour, the MACD indicates to buy but most moving averages are signaling to sell on all time frames.
Previous BTC analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of Bitcoin: