Bitcoin Price Outlook: BTC/USD Recovery Faces A Key Resistance Level
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Bitcoin Price Technical Outlook
- Bears ease up further
- Key levels and thresholds to know
BTC/USD – Trading Higher
Last week, BTC/USD continued its recovery and surged on Wednesday to $6.977 -its highest level in two weeks. Later on, the price retreated yet, closed the weekly candlestick in the green with 12% gain.
The Relative Strength Index (RSI) remained flat below 50, highlighting paused downtrend momentum.
Bitcoin PRICE DAILY CHART (May 1 – Mar 31, 2020) Zoomed Out
Bitcoin PRICE DAILY CHART (JAN 1 – Mar 31, 2020) Zoomed In
Looking at the daily chart, we noticed that on Saturday BTC/USD opened with a downward gap then closed below the 50-day average. Yesterday, the price reversed higher yet remained in current trading zone $5.625 - $6.540.
Thus, a close above the high end of the zone may cause a rally towards $7.824. Further close above this level could encourage bulls to extend this rally towards $9.080. That said, the weekly resistance level underscored on the chart (zoomed in) should be kept in focus.
In turn, another failure in closing above the high end could lead Bitcoin towards the low end of the zone. Further close below that level could lead bears to send the price even lower towards $4.186. In that scenario, the daily support levels marked on the chart should be considered.
Bitcoin PRICE FOUR Hour CHART (Mar 13 – Mar 31, 2020)
Looking at the four-hour chart, we noticed that on March 16 Bitcoin corrected its downtrend move as created a higher low at $4.435. The price rallied after however, the cryptocurrency stuck in a sideways move after creating a lower high on March 21 at $6.435.
Thus, a break below $5.855 would mean more of the same i.e. continue the sideways move and possibly send the price towards $5.626. Although, the daily support level underlined on the chart should be considered. On the other hand, a BTC/USD a break above $6.988 could trigger a rally towards 7.771. Nevertheless, the weekly resistance level underscored on the chart should be watched closely.
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.