Key highlights:
- BTC Price was rejected from $5,940
- The federal reserve cuts interest rate to near zero but markets keep tanking
- Bitcoin has lost the $4,807 support level
| ⠀Bitcoin price: | $4,640 |
|---|---|
| ⠀Key BTC resistance levels: | $4,930, $5,940, $5,955, $6,000 |
| ⠀Key BTC support levels: | $4,442, $3,782, $3,550 |
*Price at the time of writing
The fear surrounding the Coronavirus has forced the US Federal Reserve to cut interest rates yet again. Unfortunately, this measure doesn’t seem to have instilled much confidence into the markets and major indices such as the Dow Jones are posting major losses.
The crypto market did initially react positively to the news and Bitcoin saw a 14% surge up to $5,940 before crashing down do 5,188 in the next three hours.
How to buy Bitcoin (BTC) on Binance
Bitcoin technical analysis
What has been going on?
Unfortunately, the Federal Reserve measures only helped Bitcoin briefly, as the 14% surge was erased in the next three hours. Bitcoin continued trading sideways for a while before finally collapsing below $5,000.
The digital asset traded as low as $4,442 after breaking below the $4,807 support level. The daily chart is currently forming an equilibrium pattern, something that was quite expected considering the magnitude of the recent moves. Volatility continues to be extremely high and we are seeing 4-5% moves materializing within hours and even minutes.
Bitcoin price short-term prediction: Bearish
The short-term for Bitcoin continues to be bearish as the bulls have lost their chance to set a 4-hour uptrend. A small bounce is currently taking place, but it’s not looking too convincing. The 4-hour 12-period EMA has been a major resistance for the bulls, which have been unable to close above it for the past 28 hours and 6 consecutive attempts.
The current 10% bounce is already struggling on the hourly chart as the bulls have been rejected from the 12-period EMA three times already. The increasing bullish volume seems to be a good indicator for the bulls, but if they cannot close above the EMA, the bears will likely take control again.
The long-term prospects might be a little bit more positive. Popular trader and analyst Tone Vays has recently stated that the bounce from $3,850 is ‘very promising’.
UPDATE: $4,550 Limit order should have been hit. The other two #BuyTheDip Points I’m looking at is $3,550 if all hell breaks loose —> $2,750-$2,950. #Bitcoin $BTC
— Tone Vays – TheFinancialSummit.com (@ToneVays) March 16, 2020
In the tweet, Vays says that he is comfortable buying right now and that his “all in” plan is to buy at around $2,750 – $2,950 if Bitcoin goes down again.
Where is the resistance towards the upside?
Although the bears haven’t been able to set a lot of resistance to the upside, the selling pressure from the traditional stock market and fears around the Coronavirus are keeping Bitcoin’s price down.
The nearest resistance is the hourly 12-period EMA at $4,894 which the bulls are currently trying to break and close above. The next resistance is located at $5,140, the 12-period EMA on the 4-hour chart, and then we have the $6,000 area, which has proven to be tough resistance for the bulls.
What are the technical indicators showing?
As usual, the RSI has remained extremely overextended on most time frames and is not giving us a lot of clarity or good signals. The EMAs have proven to be extremely strong resistances for the bulls and have continued to reject the price.
The MACD and the Awesome Oscillator are both bearish in the 4-hour and daily charts. Volatility and trading volume have remained very high for the past 5 days and will probably continue that way for many more weeks.
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:
