According to the analyst CoinDesk Omkara of Godbole, the confirmation of the reversal of the long-term trend of bitcoin prices can be at risk due to serious resistance just above the $4000.
On Saturday, March 16, the first cryptocurrency again successfully tested the level of $4000, somewhat improving the situation of buyers. However, the nearest obstacle that could disrupt change long-term trend can be a $4073 corresponding to the 21-week moving average (MA), which served as solid resistance throughout the past year.
As a result, the price of BTC to correct to levels of support at $3775 and $3658. After that, bitcoin will likely roll back to the January values in the neighborhood of $3300.
However, recently, the price showed clear signs of recovery. For the first time since April last year, the “digital gold” has grown for four weeks. Currently, bitcoin is trading around $3960, at the end of the last seven days the growth rates exceeded 2%.
Weekly chart
On a larger timeframe shows that 21 MA served as support during the bull rally of 2017. Shortly after the reversal of the trend she began with resistance:
Weekly chart of BTC/USD exchanges are Bitstamp from TradingView
Now this line is the dynamic resistance remains on the bearish side, since it is characterized by a negative slope. Again the price is testing the MA 21 and, given the historical data, may soon occur downward correction.
However, if the price in the near future will be able to climb higher than the corresponding MA 21 $4073, it can be considered an early sign of reversal to the longer-term trend. However, as the line still looking South, as further confirmation is needed also the breakout level of $4220.
Daily chart
The daily chart of BTC/USD exchanges are Bitstamp from TradingView
In this timeframe, the picture is more or less optimistic. So, bitcoin is trading above the 100 MA, which is currently moving in the horizontal direction. Also recently there was a bullish crossover of moving averages periods of 5 and 10.
As for the short-term Outlook, analysts Telegram-channel Coin Trade expressed the opinion that soon likely to decline:
The four-hour schedule of unlimited bitcoin swap exchange BitMEX from TradingView
According to them, completes the formation of the figure of “Rising wedge”, which speaks of the weakening of the buyers. In addition, locally formed pattern “Double top”.
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