On Feb 26, the Bitcoin price created a bearish engulfing candlestick and decreased by almost 7%.
Bitcoin (BTC) Price Highlights
- The Bitcoin price created a bearish engulfing candlestick.
- It bounced at the 200-day MA.
- It will possibly begin the B wave of a corrective A-B-C formation.
- There is support and resistance at $8,350 and $9,500.
Price DecreaseThe Bitcoin price decreased rapidly on Feb 26. It created a bearish engulfing candlestick and decreased well below the $9,150 support level. Besides the breakdown, the RSI fell much below 50 after 53 days, confirming that the price is in a bearish trend. While the price reached a low of $8,555 the next day, it immediately bounced upwards towards $8,800, where it is currently trading. What is interesting about this bounce is that it occurred right at the 200-day moving average (MA). The price is creating a bullish inverted hammer, indicating that it wants to move upwards. The next support area is found at $8,350.
Elliott FormationYesterday’s rapid decrease and the RSI movement below 50 indicates that the price has begun a corrective period. On the other hand, the 200-day MA support and the ensuing bounce suggest that the price could initiate a relief rally. So, the most likely movement is an A-B-C correction. If it takes the same amount of time as the upward move, it will end around April 10 at $7,800. Looking at the shorter-term movement, we can see a resistance area at $9,600. This is also the 0.618 Fib level of the previous decrease. Therefore, this is the most likely place for the top of the B-wave, after which the price is expected to decrease. To conclude, the BTC price broke down rapidly below a significant support area, indicating that the previous upward move has ended. The price is likely to gradually increase until $9,500, before completing the correction towards $7,800. This pattern is expected to conclude in April. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.