Bitcoin Price Analysis – Bitcoin Resumes Bearishness Under $5k Following $800 Trap

Bitcoin Price Analysis – Bitcoin Resumes Bearishness Under $5k Following $800 Trap

  • Following yesterday’s $800 gains, Bitcoin trapped buyers and resumes selling pressure towards $4000
  • There’s hope for buyers if Bitcoin can climb back to $6000 resistance as $5000 remains an important level

Since the March 12 crash to $4000 (Bitfinex), Bitcoin saw a small recovery near $6000 but failed after rejecting twice. Following a quick $800 gain yesterday, Bitcoin sharply returned gains and trapped buyer to where it’s currently trading around $4884 against the US Dollar. A 7% loss overnight has brought BTC market cap under $90 billion, which shows that supply is huge. This week may become uglier than the past if volatility continues to expand downward.

Key resistance levels: $5000, $6000

Key support levels: $4000, $3600

 Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

Bitcoin is starting to show weakness again after opening the week on short. The price is currently trading under $5000 and charging towards the lower boundary of the channel. Looking at the setup, we can say that the bearish scenario has not finished yet. As of now, the sellers are targeting the $4000 level (last week’s low).

BTCUSD, Daily Chart – March 16

Should the price drops to this mentioned level and breaks lower, Bitcoin may look for support around the $3600. Meanwhile, there’s a close support around $4500 (Last Thursday’s low). On the other hand, if selling pressure holds above the $4000 level, the buyers may have a chance to push again. In such a case, the $5000 resistance would be the first target for buyers, followed by $6000.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

After a huge selloff, Bitcoin recovered well to reach $6000 mark on March 13 before dropping back. From $5100 yesterday, Bitcoin pumped about $800 but dumped back after meeting rejection around $6000 resistance. This bullish trap has caused a lot of panic selling. As we can see, Bitcoin is approaching the blue support level of $4286.

BTCUSD, Hourly Chart – March 16.png

If Bitcoin sell-off to this support, a slight drop here could allow sellers to retest the $4000 level. A fresh bearish action may start if the price breaks lower; $3600 may be explored. However, if the blue line can bolster, Bitcoin is likely to regain momentum to $5000. Above this mentioned price level lies $5200 and $6000 resistance. As of now, the bears are still gaining control of the market.

BITCOIN SELL ORDER

Sell: $4900

TP: $4286

SL: $5054

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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.