The Bitcoin price remained relatively flat last week and has never once tested the resistance or support of the descending channel identified in last week's analysis.
Thus, the new case of Bitcoin price increase is greatly increased if it can break the resistance of $ 7,200.
However, last week proved a major fundamental turning point for Bitcoin that very few people talked about.
Bitcoin down to previous lows
BTC chart/USD daily | Source: TradingView
If Bitcoin has resumed its bear trend since July 2019, it will test $ 5,600 next week.
This level of $ 5,600 is the midpoint of the descending channel and from there it is likely to be strongly denied or dropped to $ 4,100 when confirming the channel is still valid.
If so, there will be resistance at $ 7,200 and Bitcoin will once again decline in price - even until the end of the year. Hopefully the situation will not be so bad that the price is only 3K dollars but it does not rule out this possibility.
Price increased to $ 7,200
BTC chart/USD daily | Source: TradingView
Regarding the scenario of stronger price increase, an ascending channel seems to be opening. This makes many people off guard because the resistance line on the descending channel is the MA of the descending channel.
As such, $ 7,200 could be an important turning point for King Coin, bringing the price to new resistance of $ 8,300.
If so, today's support is around $ 6,060 and about $ 6,100 next week. If this level is maintained, it will definitely increase the price of Bitcoin. And it is also a strong technical signal.
Last week, the golden bug Peter Schiff sent a sarcastic tweet to Bitcoin holders:
Congratulations Bitcoin hodlers. It looks like #Bitcoin may actually be living up to its status as a non-correlated asset after all. Every asset class is rallying today except Bitcoin!
- Peter Schiff (@PeterSchiff) March 26, 2020
"Happy hodler Bitcoin. It seems that Bitcoin really lives with an unrelated asset state. All types of assets are rising today except for Bitcoin!”
However, he accidentally brought up the most basic case of Bitcoin price increases. While the global market increased last week as a direct result of trillions of dollars printed from nothing, Bitcoin does not need "stimulus packages," "quantitative easing," nor "rescue solutions." support ”.
Bitcoin has bounced back 80% from its recent bottom, suggesting it has more potential than other assets and will certainly have a positive impact on prices.
This is a great sign that Bitcoin will 'proclaim the hero' in the global epidemic, but until now, the leading cryptocurrency has not been out of danger.
MACD has not shown bullish signal
Chart MACD BTC/USD weekly | Source: TradingView
One of the best indicators to know when to buy or sell Bitcoin is the weekly MACD. As can be seen from the chart above, MACD created bullish cross 8 months before reaching an all-time high (ATH) and bearish cross one month after ATH.
It also formed a bullish cross when Bitcoin bottomed in February 2019. However, it is possible that these are just fake crossovers because there is no positive signal about the price. Probably, MACD is mimicking the models seen around the last fake bullish cross, seeing Bitcoin drop from over 8K to $ 4K and that's exactly what this month.
Thus, the MACD is signaling us once again that the bottom has appeared and now is the time to buy Bitcoin before the next bull run.
However, traders should wait for the MACD and the signal line before getting too excited. If the new ascending channel is still in effect, that is exactly what we will see.
Discount script for Bitcoin
Difficulty of exploitation BTC | Source: BTC.com
While the situation is quite optimistic, don't forget that Bitcoin's difficulty has dropped the most since December 2018 and is likely to drop more sharply in April.
Thus, either Bitcoin dropped more, or miners were more profitable, reinforcing the theory why miners surrendered at the beginning of the month. If this adversely affects the price of Bitcoin, it will invalidate the incremental support of $ 6,100 and must defend $ 5,600 and $ 4,100 next week.
Price increase scenario for Bitcoin
If the support of $ 6,100 is held, then the next level to flip is $ 7,200. If this level becomes support next week then $ 8,300 is most likely a breakout point that will rally the price back to $ 10K.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Minh Anh
According to Cointelegraph
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