Bitcoin Price Outlook: BTC/USD Rebounds from Multi-Month Low, What’s Next?
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Bitcoin Price Technical Forecast
- Bears are in charge
- Key levels and thresholds to know
BTC/USD – Bearish Market
On Sunday, bitcoin broke below the neckline of head and shoulders pattern located at $8.420 discussed in our last update: Reversal Pattern May Press Bitcoin to multi-month low
Since then, the crypto currency has been in a free fall. Today, the market has printed $3.908 – its lowest price in nearly twelve months. Later, the market has rebounded as some bears seemed to cover.
The Relative Strength Index (RSI) has dipped below 30 and remained in oversold territory emphasizing the strength of downtrend move.
Bitcoin PRICE DAILY CHART (April 2, 2018 – Mar 13, 2020) Zoomed Out
Bitcoin PRICE DAILY CHART (Dec 1 – Mar 13, 2020) Zoomed In
Looking at the daily chart, we noticed that yesterday Bitcoin lost nearly 38% of its value then moved to a lower trading zone $4.923- $4.186. Today, the price has tested the low end then surged towards $5.625. A close above this level may cause a rally towards $6.540. Further close above that level could send the price even higher towards $7.771. Although, the daily resistance levels underlined on the chart should be kept in focus.
On the other hand, any close below the low end of the zone may encourage bears to press towards $2.980. Further close below that level could mean more bearishness towards $1.241. Yet, the daily and weekly levels marked on the chart should be considered as some traders might exit/join the market around these points.
Bitcoin PRICE FOUR Hour CHART (FEB 23 – Mar 13, 2020)
Looking at the four-hour chart, we noticed that on Sunday BTC/USD broke below the March 1 low at $8.408 , then started a downtrend move creating lower highs with lower lows.
Thus, a break below $3.635 could resume bearish price action towards $3.127. Although, the weekly support level underscored on the chart should be watched closely. On the flip-side, a break above $6.796 may push Bitcoin towards $7.615. Nevertheless, the daily resistance level printed on the chart would be worth monitoring.
See the chart to know more about the critical levels in a further bearish/ bullish move.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.