Bitcoin Analysis for 2020-03-23 [Premium Analysis]

Bitcoin (BTC) Price Highlights

• The Bitcoin price has reached a weekly close above its 200-week moving average (MA).
• It may be following an ascending support line.
• There is resistance at $6,100 and $6,750.
• There is support at $5,200 and $4,200

Weekly Close

The Bitcoin price reached a weekly close of $5,813. The close was above the 200-week MA, which is currently at $5,500. The price has bounced on this MA twice between December 2018 and January 2019. It has never reached a weekly close below this particular MA, with the slight exception of last week, when the close was barely below. In addition, tracing the previously mentioned bottoms that bounced on the MA, the price might be following an ascending support line which was just validated for the third time. Even though the weekly price increased significantly last week, it was rejected by both the $6,100 and $6,750 resistance levels. Therefore, the expected movement from here would be a retest of the support at $5,200, or even the lower support area at $4,200.

Short-Term Movement

The daily outlook also supports this possibility. While the price has recouped some of the major losses of March 12, it still failed to initiate a substantial rally. The price was sharply rejected at the 0.618 Fibonacci level and decreased afterward.  It is currently trading between important daily levels of $5,600-$6,600. On the hourly chart, the price has decreased below the $5,900 level which was acting as support and validated it as resistance. From here, it is expected to go down towards the previously mentioned support levels near the low-to-mid $5,000s. To conclude, the BTC price has reached a weekly close above the 200-week MA. However, it has failed to reclaim important high time-frame resistance levels and is expected to retreat to sturdier support levels in the short-term. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.