The Bitcoin price has been decreasing since reaching a high of $10,491 on February 13. It has currently reached a very significant support area, which is expected to cause a short-term bounce.
Bitcoin (BTC) Price Highlights
- There is support at $7800 and $6800.
- The Bitcoin price is possibly trading inside a symmetrical triangle.
- BTC is expected to increase prior to the May block-reward halving.
Trader @PostyXBT outlined the weekly BTC chart and multiple resistance and support levels. In order for the upward trend to stay intact, he states that the price has to make a higher low near the current price level or at $6800. If not, the price could be heading towards $5000.
Sponsored$BTC Weekly
Another terrible weekly candle meaning we've now tapped $7.7k support much sooner than expected.
If price wants to make a higher low on the macro, this is where it would do imo.
The last line of support is $6.8k.
I'm buying some here regardless for the long term. pic.twitter.com/FmfAUyX3Bb
— Posty (@PostyXBT) March 9, 2020
Will the Bitcoin price reverse near the current level or are lower lows still to come? Keep reading below if you are interested in finding out.
Symmetrical Triangle
If the Bitcoin price completes this decrease, the most likely future movement would be a breakout from the symmetrical triangle. The third halving is projected to fall in May and the BTC price has historically increased significantly just before/after this event — so there is no reason to think that a contrary movement will transpire this time around.
Zooming in slightly, we can see that the current support area is also the 0.5 Fib level of the entire price increase.
The next support area is the 0.618 level at $6700, which is also very close to the January open — making it a support level in the monthly time-frame. In April, it will coincide with the ascending support line drawn for the bottom.
Therefore, the most likely place for a trend reversal would be at $6700-$6900. A decrease below it would likely take the place to $5000.
To conclude, the Bitcoin price has been rapidly decreasing over the past two weeks. While a relief rally is expected, we are expecting the price to eventually make another low near $6700-$6900.
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