Historically, March is a bad month for bitcoin prices. However, the beginning of spring 2019 are likely to be marked by the growth rates of the first cryptocurrency, CoinDesk analyst Omkar Godbole.
Over the last five years leading the capitalization of the cryptocurrency showed a negative trend in March:
From the table it is seen that in contrast to February, in the first month of spring of the bitcoin fell significantly over the past few years. However, this year the trend may change, especially if the resume was started in February pulses to a bullish reversal. To confirm this hypothesis, bitcoin should break through resistance at $4190 for the next one to two weeks.
By the end of February this year, the price of bitcoin rose 10% and now BTC is traded at $3820.
Three-day and daily charts
Charts of BTC/USD exchanges are Bitstamp from TradingView
At the three-day timeframe is seen as BTC bounced off the moving average with period 10. In addition, bullish signals broadcast indicators Chaikin Money flow (Chaikin money flow, CMF) and the MACD (convergence/divergence of moving averages; Moving Average Convergence/Divergence).
On the daily chart you can see that has the support of the upper boundary of the triangle stood. Yesterday, February 27, there was a sharp, but short-term price falls to this level, this resulted in a T-shaped candle Doji is the dragonfly. Its long lower shadow shows not only significant activity of the bulls, but also about significant bearish pressure on the market.
“Dragonfly” can signal the completion of a short-term downward correction and the continuation of the recovery of the BTC price. However, much depends on further confirmation in the form of a convincing green candles.
Thus, soon we the psychological mark of $4000. After its passage, to overcome a resistance in the neighborhood of $4190.
Weekly chart of BTC/USD exchanges are Bitstamp from TradingView
On a larger timeframe candle has formed “Inverted hammer”, indicating that the bulls still have enough strength to resist bears. However, the evidence for reversal of the long-term downward trend is the rise of prices above $4190 corresponding to the maximum “Hammer”.
Visible on the MACD bullish divergence and the RSI reversal. If the values of these indicators will continue to climb, the price can rise to $4833 corresponding to the 50% level of Fibonacci, relative to the November highs and December lows.
If the demand is insufficient to push bitcoin above $4190, the market will once again reign bearish sentiment, which could bring price back to around $3400.
Recall that a colleague of Godbole “the shop” Sebastian Sinclair also believes that shortly after the $4100 bitcoin closer to the psychological level of $5000.