Bitcoin Analysis for 2020-03-17 [Premium Analysis]

Bitcoin (BTC) Price Highlights

• The Bitcoin price is trading inside a short-term range of $4,400-$5,600.
• It has possibly created a double-bottom.
• The RSI is bullish.
• The price has broken out from a descending resistance line.
• There is long-term resistance at $6,800.

Bitcoin’s Double Bottom

The BTC price is trading in a short-term range between $4,400-$5,600. On March 13 and 16, the BTC price made a double-bottom near $4,600. The double-bottom is considered a bullish reversal pattern, however, it was not entirely a textbook example. The first bottom was characterized by a very long lower-wick that reached a low of $3,782 (depending on the exchange). However, the price reached a close of around $4,600. The second bottom was cleaner since the price did not break down below the range support. The pattern was combined with a bullish divergence in the RSI, which completed a failure swing bottom afterward. This indicates that the price will continue moving upwards. This would be confirmed by a flip of the $5,600 level as support. This would also cause the RSI to move above 50, another bullish sign. On another bullish note, the BTC price has broken out from a descending resistance line. This suggests that the price will move towards $6,100, which is the closest resistance area and also the resistance level from the weekly time-frame.

Long-Term Movement

In the longer-term, a breakout from the double-bottom that travels the entire height of the pattern would take the price all the way to $6,800, which is a strong resistance area. To conclude, the BTC price is trading in a range of $4,400-$5,600. It has created a short-term double-bottom which suggests that the price will soon break out from this range and head above $6,000. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.