Bitcoin btc
$ usd

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

2 mins
Updated by Kyle Baird
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The Bitcoin price began a rapid decrease on March 7 which intensified the next day. This caused the price to decrease by 10%, falling sharply below several significant support areas without experiencing any type of retracement.

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. Bitcoin Crash 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. Bitcoin RSI

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. Bitcoin C Wave 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. BTC Short-Term Movement 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.

Disclaimer

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.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...
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