Bitcoin Price Analysis – Bitcoin Plunges To 3-Month Low After Witnessing Daily 33% Loss

Bitcoin Price Analysis – Bitcoin Plunges To 3-Month Low After Witnessing Daily 33% Loss

 

• Bitcoin’s price cuts $2400 in a day to reach a 3-month low
• If Bitcoin finds support on the weekly triangle, we can anticipate a quick recovery in no time.

Today, Bitcoin saw another big shock-wave in the market, crashing 33% from $8000 to $5600 a few hours ago. So far, today’s drops recorded the biggest daily volumes in past months. At the time of writing, Bitcoin is trading at $5800 – the November 2018 support. More so, the latest break below the 2019 low of $6500 indicates a strong bearish reversal which is likely to reach $5000 in the next rally.

Key resistance levels: $6400, $6900
Key support levels: $5600, $5000

Bitcoin (BTC) Price Analysis: Weekly Chart – Bearish

Bitcoin’s bearishness is likely to end soon if the price actions respect the symmetrical triangle that started to form in late 2017. But the bearish scenario could still extend to the $5000 on the triangle’s lower boundary. Bitcoin would need to drop below today’s $5600 low before we can consider further selling.

BTCUSD, Daily Chart – March 12

From above, Bitcoin is holding major resistance at $10000. In case of a retracement, we may see a small pullback to $6400-$6900 resistance areas. Resistance above this level is $8000, from where Bitcoin initiated sell today. Currently, the volume on the weekly chart is still pretty fading at the moment. If Bitcoin breaks down this triangle, a huge selloff should be expected.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Bitcoin took out a lot of buying position following a false pin bar that wicked at $7600 yesterday. However, this bearish reaction led to a huge price dump to $5600 today. While the bears keep showing strong commitment, Bitcoin is attempting to drop lower.

BTCUSD, Daily Chart – March 12

Though, Bitcoin is currently priced at $5800. In case the price drops lower and breaks beneath the $5600, the next key level to watch out for is $5000. On the upside, there’s a close resistance at $6500 – the first red line. If Bitcoin pulls beyond the second red line of $6900, we can expect a further gain. But at the moment, Bitcoin is still strongly bearish on the daily chart

BITCOIN SELL ORDER

Sell: $6000
TP: $5600
SL: $6100

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Author : Michael Fasogbon

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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.