Bitcoin Price Analysis – Despite Quick Recovery From $4000, Bitcoin Still Down By 27%

Bitcoin Price Analysis – Despite Quick Recovery From $4000, Bitcoin Still Down By 27%

• Bitcoin recovers $1400 back in the market following a daily drop to $4000 benchmark
• A break below the weekly triangle might cause serious drops for Bitcoin on a long-term

After dropping sharply to $5600 yesterday, Bitcoin further dropped $1700 to reach $4000 (Bitfinex) mark earlier today. BTC market losses over 40% under 24-hour, that’s huge. This bearish sentiment has made BTC market capitalization dropped to $97.2 billion at the moment. If the global market continues to meltdown, we should expect  cryptocurrency market to follow the course.

Key resistance levels: $6000, $6500
Key support levels: $5000, $4000

Bitcoin (BTC) Price Analysis: Weekly Chart – Bearish

As mentioned yesterday, Bitcoin dropped and wicked at $4000 a few hours ago after attempting to break below the weekly triangle. But Bitcoin quickly recovers back to where it’s currently trading around $5450 against the US Dollar. A clean rebound is likely if Bitcoin can remain within this symmetrical triangle.

BTCUSD, Weekly Chart – March 13

If the scenario occurs, the key resistances to consider here is the red line of $6500 – the mid-December low. If Bitcoin can reclaim this resistance, we may start to consider a short-term bullish. In case the bears resume pressure and wipe the $5000 level again, the price may roll back to the $4000 daily low or even beyond.

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

From $4000 low, Bitcoin recovered a quick $1400 following the huge selloff over the past hours. As of now, Bitcoin is trading above the $5000 level, which is an important level for the bulls. The buyers are showing interest in the market, but the bear interest appeared stronger on the daily chart.

BTCUSD, Daily Chart – March 13

Technically, Bitcoin is trying to relieve the pressure with a nice pullback, which is likely to reach a psychological resistance level of $6000 and perhaps the $6500. A significant climb above this level could trigger more buy setup. Inversely, Bitcoin could drop lower if the price drops below $5000 and $4000. For the meantime, Bitcoin could remain under the bearish radar until buyers show stronger commitment.

BITCOIN PENDING ORDER

Sell: $6200
TP: $5000
SL: $6550

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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.