CoinDesk analyst Omkar Godbole admits that soon the price of the first cryptocurrency waiting for a pullback to the levels in the range of $3600-3800.
Currently BTC is in the range of $3920-4055. Soon, however, the price may break the lower boundary of the corridor. In particular this is evidenced by the Doji candle that formed around the 21-week moving average (MA). This candle indicates uncertainty, and that the bulls power is running out.
After leaving the band the following levels of support will be at $3775 and $3658. On the other hand, closing the daily candle above the level of $4055 will give strength to customers. However, while such a scenario seems unlikely.
Weekly chart
Chart BTC/USD exchanges are Bitstamp from TradingView
Right under the 21-day MA formed a Doji candle which the opening price and closing almost at the same level. If bitcoin in the near future once again fails to break through this important line of dynamic support, the price will follow it down.
However, taking into consideration the second half of February, the pattern of “Inverted hammer” and the subsequent for the last five weeks of a moderate recovery prices, bulls still have a chance to confirm the reversal of the long-term trend. However, for this they will have to overcome resistance at $4190, corresponding to the maximum “hammer”.
Junior timeframes
The daily and four hour charts BTC/USD exchanges are Bitstamp from TradingView
On the daily chart is noticeable bearish engulfing and tilt-shift 5-day MA with the up to the down and cross that moving average MA 10. All it says about changing attitudes and increasing pressure from the sellers.
At this timeframe the observed side channel with a lower bound at $3920, which may be broken in the next day or two. After that, the price likely will stay at $3658 corresponding to a minimum of 27 Feb.
If bitcoin will break through the upper boundary of the sideways range at $4055, the next resistance could be around $4200. However, a serious obstacle on the way to it is ill-fated 21-week MA, the slope of which is still in a downtrend.
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