The Bitcoin price started the week of March 23 with a significant increase, reaching a high of $ 6,957 on March 25. However, the high could not be sustained and the price fell to close the week at $ 5,881.
The weekly candle turns out to be a reversal hammer, which can be considered a bearish indicator due to the fact that it is happening in a downtrend.
Bitcoin weekly candles
Last week's candle closed like a reverse hammer. Considering its position in relation to long-term movement, this candle can be considered bearish.
Price has created two long upper shadows, a sign of resistance and strong selling pressure. In addition, the wick is present right at the $ 6,900 zone, which is an important support area that has turned to resistance. Until the price succeeds in overcoming it, price fluctuations can be considered as falling.
Within the weekly time frame, the nearest support area is found at $ 5,300, a level also supported by the 200-week moving average (MA). A breakdown below this area can cause a quick drop due to the lack of support of up to $ 4,000.
While the weekly close above the 200-week MA is up, all other signals indicate a downward trend on a high time frame.
Short-term outlook
In the short term, the price has broken down from an ascending support line that it has been following since reaching a low of $ 3,850 on March 13. The price has been broken on March 28 and has dropped since then. Although the incident was relatively slow, there was almost no upward pullback.
There are two major areas of support, found at $ 5,750 and $ 5,050, prices currently very close to the first level.
Although it is possible for the price to reverse at this level and move upwards, the lack of trading structure, the lack of bullish divergences and the high time frame outlook suggest that it is likely that the price will eventually reach the $ 5,050 area.
The current relief rally from the $ 5,800 area is not expected to be a long-term movement, but rather a rally of relief prices before slipping to the $ 5,050 support level.
In short, the BTC price was rejected by the $ 6,900 resistance area and created a second weekly wick on consecutive. The price has broken below an ascending support line for 15 days and is expected to decline at least until the support levels mentioned above are reached.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
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