Bitcoin Analysis for 2020-03-13 [Premium Analysis]

Bitcoin (BTC) Price Highlights

• The Bitcoin price decreased by 43 percent on March 12.
• It has created a massive bearish engulfing candlestick.
• There is support at $5300 and $3500.
• The price has decreased below its 200-week moving average (MA).
• There is short-term resistance at $5700.

Bitcoin’s Historic March 12 Decrease

On March 12, the Bitcoin price initiated a very rapid decrease. It went from a high of $8000 to a low of $4607 before bouncing slightly upwards above $5000. The decrease measured 43 percent. Additionally, the daily candlestick had absolutely massive volume not seen since since the all-time highs of 2017. The price closed with a bearish engulfing candlestick, barely registering a lower wick.

Support Areas

The weekly candlestick is shaping up to be bearish engulfing. There are two main support areas, found at $5300 and and $3500. The Bitcoin price is currently standing slightly below the former, while it has reached a wick low of $4000. Bitcoin has yet to reach the $3500 support area. On a slightly bullish note, the BTC price has yet to close below the 200-week MA, even though it has decreased significantly below it. There are almost three full days until the weekly close. The price has never reached a weekly close below this MA, even though it has reached a wick below it three times — in January and August 2015 (twice).

Short-Term Movement

In the short-term, the BTC movement has been extremely volatile, in which one hourly candlestick went from $4000 to $5586 — an increase of 40 percent. At the time of writing, the Bitcoin price was trading inside the resistance area of $5700, which previously acted as support yesterday. To conclude, March 13 recorded Bitcoins biggest daily percentage drop to date. The price has broken through below all of the lower time-frame support levels but has yet to close below the 200-week moving average. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.