At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our March 28 analysis of Bitcoin (BTC), we predicted that the price would move inside the confines of the ascending channel defined below with possible slight decreases. At the time of writing, the price had made a high of $4050 before dropping slightly. It is still trading within the confines of the channel.
Based on today’s analysis, we believe that Bitcoin will continue trading inside the confines of the channel defined below. Short-term decreases remain likely while long-term growth continues.
Bitcoin (BTC): Trends and Highlights For March 29, 2019
- The price of Bitcoin has been on a short-term uptrend since Mar 25.
- BTC/USD is trading inside a longer term ascending channel.
- There is bearish divergence developing in the RSI and the MACD.
- There is support near $3900.
- There is resistance near $4140 and $4030.
Ascending Support
The price of BTC on BitStamp is analyzed at two-hour intervals from Feb 17 to Mar 29 to determine Bitcoin’s current trading pattern. On Feb 17, the price made a low of $3553.80. A sharp upward move began. This was followed by a sharp correction. The price has been on a gradual uptrend since, with each low being higher than the previous one. Tracing these lows gives us an ascending support line:
On Feb 25, Bitcoin made a high of $3861.80. Since then, several market cycles have been completed with each high being higher than the preceding one.
Tracing these highs gives us an ascending resistance line. Furthermore, the resistance and support lines combine to create an ascending channel:
Price increases and decreases are equally likely within the channel. However, because the channel is upward facing it is expected that the price will keep increasing in the long-term.
Bearish Divergence
To better assess future price fluctuations, we examine the price of BTC on BitStamp at one-hour intervals from Mar 25 to Mar 29 alongside technical indicators.About the indicators: The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market. The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
Combining RSI and MACD bullish/bearish divergence with support/resistance essentially predicts price fluctuations.
On Mar 27, the price made a high of $4035 before closing at $4025. On March 29, it made a high of $4050.
Similarly, the RSI and the MACD made the first high on Mar 27. However, they have proceeded to generate lower values since. This is known as bearish divergence and often precedes price decreases. The level of divergence is not very significant.
This may suggest a downward movement toward the support line, but a breakdown below support does not appear likely. Short-term price losses could be
Based on these indicators we believe the price of Bitcoin will decrease towards the support line. However, it is possible that Bitcoin will touch and validate the resistance line for the sixth time before dropping.
Reversal Areas
In order to better determine possible future levels of resistance and support, the price of BTC on BitStamp is analyzed at two-hour intervals from Feb 17 to Mar 29.
Resistance and support areas are created when the price visits the same level several times. The first resistance area is found near $4040. The price is currently trying to break out of this level. he next resistance area is found near $4140, coinciding with the top of the channel. According to this analysis, it is possible that the price will eventually reach the second resistance area.
Bitcoin is currently trading above the first support area at $3940. Continued price drops to this level seem likely in the future.
Summary of Analysis
Based on this analysis, the price of BTC is likely to keep moving inside the confines of the ascending channel with steady, gradual price decreases. It is likely that a drop towards support will follow in the future. However, it is possible that the price touches the resistance line before dropping to support. Do you think BTC will drop towards the support line of the channel? Let us know your thoughts in the comments below! Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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 several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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 several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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