On March 1, 2019, Bitcoin (BTC) opened at $3791.02. Since then, it has gradually increased. On Mar 31, it closed at $4096.08.
Thus, Bitcoin’s price increased 8% throughout the month of March.
Below, we are going to take a look at the trading structure of Bitcoin throughout March. In addition we summarize the most important moves that materialized over the last month.
First, we summarize the most important trends and highlights for Bitcoin in March:
Bitcoin (BTC): Trends and Highlights For March 2019
- The price of Bitcoin has been on a gradual uptrend since Mar 1.
- BTC/USD has been trading inside an ascending channel throughout March. This trend appears to be continuing into April.
- A rapid price increase was initiated on Mar 5.
- Bitcoin broke out from an ascending triangle on Mar 15.
- The price of BTC finally broke down from a horizontal support line on Mar 22.
The price of BTC on BitStamp is analyzed at one-day intervals from Mar 1 to Mar 31 in order to determine its current trading pattern.
On Mar 1, the price made a low of $3791.06. It 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 Mar 5, the price made a high of $3877.10. Several market cycles have been completed since, with each high being higher than the previous one. Tracing these highs gives us a descending resistance line.
Price increases and decreases are equally likely within. However, because the channel is facing upward, the price of Bitcoin has gradually risen throughout March.
Based on this trend, maintained price gains for Bitcoin could be expected into April.
The price of BTC is going to be analyzed in three time period. Each of these mark a significant movement for Bitcoin in March:
- Mar 4 – Mar 9: An upward movement which failed to reach $4000.
- Mar 13- Mar 16: A successful upward movement past $4000.
- Mar 22 – Mar 26: A drop to under $4000 after a monthly high
These time periods are traced in the graph below:
Now we analyze each of these movements:
Mar 4-9: Bitcoin Struggles for $4000
On Feb 28, the price made a high of $3897.62. A gradual downtrend ensued. Prices reached a low of $3670 on Mar 4.
Prices subsequently rose. Bitcoin reached a high near $3975 on March 9.
Between March 6 and 9, the average trading price of BTC was between $3800 and $3900. We successfully predicted this movement in our Mar 6 analysis.
The short-term trading pattern for Mar 6-9 can be seen in the graph below:
Mar 13-16: BTC/USD Moving Past $4000
On Mar 12, BTC/USD made a low of $3791.06 after a gradual decline. A sharp increase ensued. By the end of Mar 12, BTC had reached a high of $3877.69.
After a slight drop on Mar 13, Bitcoin initiated a reversal. The price rose to over $4000 on Mar 15 when a high of $4040 was reached.
We successfully predicted this movement in our Mar 15 analysis.
Tracing the highs and lows between Mar 12 and 15 generates gives us an ascending triangle:
Mar 22-26: Falling Below $4000
After the $4040 high, Bitcoin began another gradual downtrend. Prices touched the support line on Mar 26.
Between Mar 22 and 26, a series of lows traced a temporary horizontal support line. The low on Mar 26 marked a breakdown below this temporary support as seen below:
Once this support was broken, Bitcoin returned to the long-term support line of the upward facing horizontal channel. We successfully predicted this breakdown in our Mar 22 analysis.
Price continued tracing the long-term support on Mar 27 and 28 before breaking past $4000. At the end of March, the price was still trading at over $4000.
Summary of Analysis
In the month of March, the price of Bitcoin enjoyed gradual increases. It has been trading inside an ascending channel with significant fluctuations between resistance and support. It is currently very close to the resistance line of the channel.
Do you think the price of BTC will keep increasing? 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.