Is Bitcoin About to Crash Below $4000 Again? (BTC USD Price Prediction: March 29)

A gradual increase followed. A high of $4036 was reached three times between Mar 27 and 29. At the time of writing on Mar 29, Bitcoin was trading around $4030. Will Bitcoin keep increasing slowly or will price drop down to $3850 lows again? 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. 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.