Bitcoin (BTC) Price Analysis – March 22
The coin is heading towards the support level of $5,000. Should the Bears succeed in breaking down the mentioned support level, the price may be dropped to $4,600 and $3,800.
BTC/USD Long-term Trend: Bearish (Daily Chart)
Key levels:
Resistance Levels: $7,000, $7,500, $8,000
Support Levels: $5,000, $4,600, $3,800
The cryptocurrency found support at $3,800 price level on 13 March. Further decrease in price was prevented by the Bulls. The price was pushed up towards the former resistance level of $5000 where it observed consolidation for a few days. Shortly after the consolidation scenario, the Bulls gained more pressure and the price increase to test the resistance level of $7,000. The coin could not break up the level but rather bounces off to retest the broken level.
The price was resisted at the 21-day EMA. any attempt by the Bulls to break up the just mentioned dynamic resistance level may expose the price to the resistance level of $7,500 and $8,000. However, the coin is heading towards the support level of $5,000. Should the Bears succeed in breaking down the mentioned support level, the price may be dropped to $4,600 and $3,800. The Relative Strength Index period 14 is below 40 levels with the signal line pointing down which connotes sell signal.
BTC/USD Medium – Term Trend: Ranging (4H Chart)
On the medium chart, BTC has been range-bound within the resistance level of $7,000 and the support level of $5,000.The bearish momentum dropped the price at the support level of $5,000 on 16 March. A bullish engulfing candle formed and the price increased to test the resistance level of $7,000. Currently, the price is descending towards the support level within the channel.
On the downside, immediately after the support level of $5,000 is penetrated, the coin will be targeting $4,600 and $3,800 price level. Meanwhile, the Relative Strength Index period 14 is below 50 levels with the signal line pointing down to indicate a further reduction in BTC price.
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