Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Bitcoin (BTC) Price Rebound Nears Technical Resistance

Bitcoin (BTC) Price Rebound Nears Technical Resistance

Nick Cawley, Senior Strategist

Share:

What's on this page

Bitcoin (BTC) Price, News and Analysis:

  • Head and shoulders pattern suggest BTC may struggle to push higher.
  • ‘Be prepared to lose all your money’, incoming BoE governor Bailey.

A Guide to Day Trading Bitcoin and Other Cryptocurrencies

Bitcoin (BTC) Back Above $9,000 for Now

Bitcoin continues its recovery off the March 1 low around $8,400 and is pushing back above $9,000. The daily chart shows a few interesting set-ups which suggest a battle between bulls and bears is likely in the short-term.

Bitcoin broke below the 200-day moving average last week but this move has not been convincing so far with Wednesday’s small spinning top candle showing Bitcoin opening and closing around $8,750, on top of the 200-dma. Today Bitcoin has used this long-term moving average as a springboard to push higher.

The chart also shows BTC close to completing a head and shoulders pattern, albeit not a perfect set-up. This suggests that resistance to further upside will cut across around $9,200 to $9,500. In the way of the higher level, the 20- and 50-dmas are both situated at $9,300. The CCI indicator shows BTC moving out of oversold territory.

Next BoE Governor Doubles Down on Bitcoin

Andrew Bailey will become the new Bank of England Governor on March 16 and will become one of the world’s most influential central bankers. And this may not be good news for Bitcoin, with Mr. Bailey a known bear of cryptocurrencies. In a previous role as head of the Financial Conduct Authority (FCA), Mr. Bailey warned in December 2017 that ‘if you invest in Bitcoin, be prepared to lose your money’. The BoE governor doubled down yesterday, telling a Treasury Select Committee meeting that Bitcoin has ‘no intrinsic value’ adding, ‘There’s no guarantee of the value of Bitcoin. I’ve said publicly, because we are concerned about it...if you want to buy Bitcoin, be prepared to lose all your money’.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Nick Cawley
Building Confidence in Trading
Get My Guide

Bitcoin (BTC) Daily Price Chart (June 2019 – March 5, 2020)

Bitcoin btc daily price chart
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Nick Cawley
Improve your trading with IG Client Sentiment Data
Get My Guide

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Bitcoin (BTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES