Bitcoin Analysis for 2020-03-18 [Premium Analysis]

Bitcoin (BTC) Price Highlights

• The Bitcoin price is trading inside a short-term range of $4,400-$5,600.
• It has broken out from a descending resistance line.
• The price is trading above its 50-hour moving average (MA).
• BTC is in the process of completing a double-bottom pattern.

Bitcoin’s Breakout

Since March 13, the BTC price has been trading in a range of $4,400-$5,600. On March 16, the price broke out from a descending resistance line and clearly moved above the midpoint of the range. Since then, the price has been gradually increasing but has failed to even reach the resistance line of the range. However, the breakout caused the price to move above its 50-hour moving average (MA), which the price is now using as support. In addition, the 200-hour MA is closer to the current price, allowing for the opportunity of a golden cross in the hourly time-frame if the price were to break out from this trading range.

Double-Bottom

Since the beginning of the range, the price is seemingly in the process of completing a double-bottom, which is also combined with a considerable bullish divergence in the RSI. This suggests that the price will head upwards and potentially break out from the trading range, aligning with the shorter-term view. As long as the price stays above the midpoint of the range at $4,750, the double bottom-pattern remains in play. To conclude, the BTC price is trading in a range of $4,400-$5,600. It has broken out from a short-term descending resistance line and has created a double-bottom that is indicative that the price will head towards the range high and possibly break out. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.