Bitcoin Analysis for 2020-03-09 [Premium Analysis]

Bitcoin (BTC) Price Highlights

• The Bitcoin price has broken down from its trading range.
• It has begun the C wave of an A-B-C correction.
• The daily RSI is bearish.
• There is support at $7,800 and $7,200.
• A short-term bounce is expected.

Bitcoin Breakdown

The Bitcoin price has been decreasing over the past three days, in what was likely the beginning of the C wave.

The decrease caused the price to go down below the 200-day moving average (MA). Also, the daily RSI was rejected at the 50-line, confirming that the price is in a downward trend.

Currently, the price might have found support at the $7,800 area, with the next lower-support zone around $7,200.

On the other hand, the closest resistance area is found at $8,250.

The current area is expected to provide some short-term relief, due to it acting as both support and resistance several times prior. In addition, the 6-hour RSI is the lowest it has been since Dec 17, 2019.

Future Movement

As for the future movement, this is likely the beginning of the C wave. Since five subwaves are expected, yesterday’s rout was likely the first.

The lack of retracement until now suggests that the entire wave decrease will be sharper and might cause the price to go all the way down to the beginning of the upward move near $6,700.

The short-term chart gives us the possible target for the bounce around $8,380-$8,530, the 0.382 and 0.5 fib levels of the entire decrease.

The slight bullish divergence in the RSI and the creation of a bullish inverted hammer make it more likely that the price initiates this bounce.

To conclude, the BTC price initiated a very rapid decrease and fell below numerous support levels. While a short-term bounce is expected, the longer-term view indicates that BTC will drop to at least the low $7,000s.

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