Bitcoin price analysis shows that the coin has bounced on Friday from the lows seen after the crash on Thursday. The price dipped to a low of 3,858 before recovering in a volatile session.
Bitcoin Price Medium-term Trend
On March 12, the price of Bitcoin (BTC) dropped below $4,000 after abruptly plummeting 11.24% to a new yearly low at $3,858. The sharp downside move seems short-lived as the price quickly rebounded to $5,260.
At the time of writing this Bitcoin price analysis, BTC is having an excellent pullback while trading near $5,500 level. From a technical perspective, Bitcoin bulls have the zeal and desire to reverse the downtrend.
On the upside, if more buyers emerge, the crypto’s price will rise towards the $5,800 resistance level. A break above the $5,800 level could see the price surge towards $6,000 and $6,500. If the price manages to climb back above $6,500, it could resume a fresh increase in the coming days. On the downside, if the price fails to break above the $5,500 level, the market is likely to fall to retest the support at $5,000 or $4,500.
Meanwhile, the Moving Average Convergence Divergence (MACD) line and the signal line are below the zero line which indicates a sell signal.
BTCUSD Price Short-term Trend
On the 1-hour chart, BTCUSD price is currently recovering after a catastrophic decline that saw the pair drop from well above the $8,000 level. However, the pair is facing hurdles near the $5,600 level which suggests that the selling is not over yet. With buying at lower levels and selling on rallies, the volatility is likely to remain high for the next few days. Though too early, we feel that the pair is close to a bottom.
Therefore, a clear break above the $5,600 resistance could set the pace for an upward move to $6,000 in the short term. The next major resistance is near $9,000, above which the price is likely to aim a break above the $9,200.
Meanwhile, the MACD line and the signal line are above the zero line which indicates a buy signal.
- Resistance Levels: $5,500, $6,000, $6,500
- Support levels: $5,500, $5,000, $4,500
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.