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 $6800.
- The Bitcoin price is possibly trading inside a symmetrical triangle.
- BTC is expected to increase prior to the May block-reward halving.
Will the Bitcoin price reverse near the current level or are lower lows still to come? Keep reading below if you are interested in finding out.$BTC Weekly
— Posty (@PostyXBT) March 9, 2020
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
Symmetrical Triangle
With the recent decrease, the $10,491 high reached on February 13 definitely seems like the current movement’s high. This enables us to draw a descending resistance line that is traced all the way from the all-time high price reached in December 2017.
Additionally, we can also outline an ascending support line from the December 2018 low — which created a symmetrical triangle when combined with each other.
The weekly RSI movement over the past 168 days is indicative of range trading. The RSI has moved above/below the mid-point line five times. Since the RSI has just decreased below 50, a drop towards the support line slightly below $7000 seems almost a certainty.
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.Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for...
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for...
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