Key Highlights:
- Bitcoin bulls have been rejected from an important resistance level at $7,000 a few days ago
- Initially, the rejection didn’t see a lot of continuation, unfortunately, the bears have been able to see more recently.
- Bulls need to defend the crucial $5,688 support level to defend the daily uptrend
| ⠀Bitcoin price: | $6,116 |
|---|---|
| ⠀Key BTC resistance levels: | $6,338, $6,900, $6,957, $7,000 |
| ⠀Key BTC support levels: | $6,000, $5,990, $5,688 |
*Price at the time of publication
After a rejection of the $7,000 area on March 25, the digital asset continued trading sideways for the next 30 hours. It seemed like the bears weren’t going to get any continuation despite a double top formed on the daily chart, however, on March 27, the digital asset dropped by more than 5%. Bitcoin has continued to decline and closed below the daily 12-period EMA and it is now currently eying down $6,000
How to buy Bitcoin (BTC) on Binance
Bitcoin Technical Analysis
What has been going on?
The bulls are currently trying to defend the daily uptrend after several indicators shifted positively towards them. The bulls were finally able to break above the daily 12-period EMA and the MACD crossed bullishly. Unfortunately, Bitcoin was rejected from the 26-period EMA and the $7,000 area where there is a lot of resistance currently.
Now, BTC has dropped and closed below the daily 12-period EMA and the MACD is looking for a bearish cross again if the bulls cannot defend the $5,688 support level, the last higher low.
Bitcoin price short-term prediction: Neutral
The size of the pullback is not concerning even though the bulls have lost the daily 12-period EMA. Ideally, the bulls would like to set a higher low above $6,000 and continue with the uptrend but the chances of breaking below this level seem to be quite high currently.
Looking at the 4-hour chart, the bulls have attempted a bounce around 20 hours ago creating a long lower wick candlestick with a ton of volume. Unfortunately, there was no continuation and the price has dropped down again.
The last support level is $6,024 and $6,000 psychological. The bulls can attempt to form a double bottom and bounce from there but so far there are no positive signs for them.
Where is the resistance towards the upside
There is now a lot of resistance for the bulls as they have been rejected too many times at this point. The 4-hour chart has set a resistance level at $6,319 and possibly $6,271 (12-period EMA currently). The next resistance would be all the way up at $6,700 but the toughest resistance area is the $7,000 are which we have talked about extensively.
This area remains the most crucial resistance level and if BTC were to break above it, $8,000 would definitely be in the cards as there is no more resistance until that point.
What are the technical indicators showing?
Although the daily MACD shifted bullish on March 22, it is now on the verge of flipping bearish again if the bulls cannot defend the $5,688 level. The RSI is not overextended yet at 41 points which means the bears can still see continuation without any resistance.
The daily EMAs are now bearish as Bitcoin has dropped below both of them or rather, rejected from the 26-period EMA and dropped below the 12-period one. The momentum (10) indicator is still bullish but also looking to turn bearish again.
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:
