On March 9, the BTC price reached a major support area at $7,700, initiating a short-term bounce. While the price stayed above this level for three days, it decreased sharply on March 12, creating a bearish engulfing candlestick and breaking down below this area.
Bitcoin (BTC) Price Highlights
- The Bitcoin price has decreased below an important daily support level.
- There is support at $7,000.
- The daily RSI is oversold.
- The price is trading inside a long-term symmetrical triangle.
The Bitcoin price has decreased below a major daily support level, found at $7,750. The price initially bounced above this price point on three successive days between March 9-11, creating long lower-wicks each time. However, BTC decreased sharply yesterday, creating a bearish engulfing candlestick.
The next important support area in this time-frame is found at $7,000.
There is a descending resistance line that the price has been following since August 2019. While the price broke out above this line on Jan 14, 2020, it has yet to validate it as support.
The line will soon coincide with the $7,000 support area, making it a very likely level to initiate a bounce. The daily RSI is oversold but has yet to generate any bullish divergence, indicative that the decrease will continue.
In the long-term, the BTC price has been trading inside a symmetrical triangle since reaching an all-time high in December 2017.
The main support area in this time-frame is also found at $7,000. While it is slightly above the ascending support line at the time of publishing, it will soon create a confluence of support levels and will be a very likely place to initiate a bounce.
To conclude, the BTC price has decreased below a significant support level on the daily time-frame. The next area that will likely initiate a reversal is found at $7,000.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
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