Bitcoin Analysis for 2020-03-06 [Premium Analysis]

Bitcoin (BTC) Price Highlights

• The Bitcoin price has broken out above its previous trading range.
• There is resistance at $9,150 and $9,450.
• There is support at $8,975.
• It has created what resembles a head-and-shoulders pattern.
• The daily and hourly RSI are bearish.

Bitcoin Breakout

On March 5, the Bitcoin price created a bullish engulfing candlestick and bounced strongly from the middle of the range.

This caused it to move above both the 50 and 200-hour MAs, which made a bullish cross. The price continued to increase until it reached the resistance area at $9,150, where it is currently trading. But, it has created what seems like a head-and-shoulders pattern, albeit with an unclear neckline.

Therefore, the anticipated price movement would be a re-test of the breakout level combined with the 50-hour MA, prior to the continuation of the upward move.

The possibility of this short-term decrease is supported by the hourly RSI, which has generated some bearish divergence and completed a failure swing top.

Therefore, the next step is likely a decrease toward the support area at $8,975.

Future Movement

In the longer-term, the price is completing the ‘B wave.’ The area forecasted to be the end of this wave is found between the 0.5-0.618 Fib levels of the previous decrease, more specifically between $,9250-$9,400. The previous support area at $9,600 should act as the upper-limit.

This view is supported by the daily RSI, which is approaching the 50-line from below and has almost reached it. An RSI rejection along with a resistance rejection would mark the end of the pattern.

To conclude, the Bitcoin price began an upward move and broke out from its trading range. It is likely that after a short retracement, the move will continue until around $9,400 to test resistance.

For those interested in BeInCrypto’s previous Bitcoin analysis, click here.