The Bitcoin price began a rapid decrease on March 19, at one point increasing by 22% from its low of $5,252. The price has continued its increase today, reaching a high of $6,900.
Well-known trader @CryptoCred posted a Bitcoin chart stating that the price is trading inside a very significant weekly time-frame area, with support at $6,100 and resistance at $6,800. As long as the price is trading inside this area, his bias remains neutral. A breakout/breakdown from the range would make his bias bullish/bearish.
Sponsored$BTC Update
Reached range high ($6700).
Weekly close above = bullish bias.
Weekly close below = neutral bias, will look for pullbacks to range low ($6100).
Intraday will be looking to sell weakness below $6700 if I get something. No leverage longs for me at these levels. pic.twitter.com/Q8bUmCo7V3
— Cred (@CryptoCred) March 20, 2020
Let’s take a closer look at the BTC price movement and determine where the price will head to from here.
Trading Range
The price is currently trading right at the resistance line of the $6,100-$6,800 trading range. The price first reached the $6,800 area in April 2018 and bounced upward. Afterwards, the price fell to the $6,100 support in July 2018 and began consolidating within these two levels.
The most recent touch came in December 2019, when the price bounced on the $6,800 area. After last week’s decrease, the price has returned and reached the $6,800 area once more, which is now likely to act as support.
Current Resistance
SponsoredA look at the daily chart shows the current bullish engulfing candlestick that is in the process of being created. This is the fourth candlestick in a row that is bullish.
In addition, there are two other signs that solidify the current resistance. The price has reached the 0.618 Fib level of the previous downward move and the daily RSI is quickly approaching the 50 line from below.
Therefore, there is a confluence of resistance levels that could cause the price to move downward.
In the hourly time-frame, the price has already begun its downward move. In addition, the hourly RSI has created some bearish divergence.
The hourly support area also coincides with the weekly time-frame support.
To conclude, the BTC price has reached an important resistance area in both the weekly and hourly time-frames. A decrease toward $6,100 is expected and possibly lower.
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