Bitcoin Price Analysis – Bitcoin Appeared Weak After Losing 6% Overnight, Will Bears Takover Again?

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23 March 2020 | Updated: 23 March 2020

• The price of Bitcoin remains trapped within a symmetrical triangle on a weekly chart.
• Bitcoin is likely to resume bearish if the price drops below the daily low – $5677

Last week, the cryptocurrency market saw a significant volume, which made Bitcoin recover about 20% (from $4500) to reach a high of $6929. However, Bitcoin dropped back and closed around $5800 for the week. Following the latest price actions, Bitcoin is currently trading around $5845 with 6% loss overnight. We can expect a decent recovery if Bitcoin can reclaim $6000. Otherwise, a slow drop may roll BTC back to $5000.

Key resistance levels: $6200, $6900
Key support levels: $5677, $5000

Bitcoin (BTC) Price Analysis: Weekly Chart – Neutral

Looking at the weekly chart, we can see that Bitcoin showed some respect to the symmetrical triangle pattern after dropping to an 8-month low ($4000) in the past weeks. Following a recent bounce from the triangle’s support, Bitcoin is slowly gaining momentum back.

BTCUSD, Weekly Chart – March 23

If the market continues to show strength again, we can expect the price to reach the triangle’s resistance in no time. The first level of resistance is $6900, which is last week’s high. An increase above this level would allow more gains to $8000. In case of bearish extension, the support to look out for is $5000 and $4000 level, which is slightly below the triangle pattern.

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

Though Bitcoin has lost some value over the past few days but considering the previous lows, which is supported by a white diagonal support line, we can say that Bitcoin is still bullish on the daily chart. However, the bears might regain control if Bitcoin pulls back beyond this rising trend line.

BTCUSD, Daily Chart – March 23

If BTC closes below today’s low ($5677), the price is likely to roll back at $5000, which is beneath the white rising trend line. On the other hand, Bitcoin could bounce back to $6200 and $6900 (last week’s high) if the buyers turn active in the market.

BITCOIN BUY ORDER

Buy: $5750
TP: $6200
SL: $5700

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Michael Fasogbon

Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.