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Bitcoin (BTC) Price Analysis: Bullish Correction Needed?

Bitcoin bulls are putting up a fight and defending the nearby support around the $4,050 minor psychological level. This lines up with the mid-channel area of interest on the 1-hour time frame and the 38.2% Fib retracement level.

If this keeps holding as support, bitcoin could recover to the swing high around $4,170 or the channel top at $4,200. Stronger bullish momentum could even lead to a break above the channel resistance and a steeper climb. A deeper correction, on the other hand, could last until the 61.8% level closer to the channel bottom and the $4,000 major psychological mark.

This is also near the 200 SMA dynamic inflection point, which is below the shorter-term 100 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse, so buyers might just be waiting to hop in at better prices on the pullback levels.

RSI is heading up to show that there’s bullish momentum left, but the oscillator is nearing the overbought zone to signal exhaustion. Turning lower could indicate that sellers are about to return. Stochastic has already made it to the overbought zone to show that buyers are tired and might be ready to let bears take over from here.

Renewed bullish expectations and low trading volumes may have propped bitcoin up earlier in the week, but it remains to be seen if the gains can be sustained. After all, traders had been holding out for actual industry developments before picking a clear direction for bitcoin.

Forecasts have been mixed, with some calling for a much larger dip to a bottom around $1,850 before bitcoin is able to pull off a big rebound. Others say that the $5,000 mark might still be reached sometime in May.

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Bitcoin (BTC) Price Analysis: Another Upside Breakout Attempt

Bitcoin is back to testing the top of the symmetrical triangle visible on the 4-hour chart, perhaps making another attempt to break higher and sustain an uptrend.

A strong close above the $4,100 to $4,200 area could be enough to confirm that bulls have won the upper hand and could push for a climb that’s the same height as the triangle. This pattern spans $3,200 to around $4,400 so the resulting climb could take it up to $5,400 and beyond.

The 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that resistance is more likely to break than to hold. The moving averages are also close to the bottom of the triangle to add to its strength as support. Still, a break below the $3,800 mark could spur a slide that’s also the same size as the triangle.

RSI turned lower after recently reaching the overbought zone, indicating that selling pressure is about to kick into high gear. This oscillator has plenty of room to head south before indicating oversold conditions, which means that bears could stay in control for much longer.

Stochastic is also on the move down to show that bearish momentum is in play. The oscillator is just about to cross the center line to confirm the presence of selling pressure. With that, another dip to the triangle support could be possible.

Light trading volumes are seen to be the primary factor that propped up bitcoin, along with the slight improvement in sentiment as nearby support levels have once again been defended.

There doesn’t seem to be a major catalyst supporting the recent bounce, so there’s still a pretty good chance that the gains could be unwound as more traders and analysts weigh in. Many acknowledged that sentiment remains bullish, at least based on recent social media activity. Some maintain that the $5,000 target could be hit by May.

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Bitcoin (BTC) Price Analysis: Volatility Jumps But Still Directionless

Bitcoin spiked strongly in both directions over the past few hours as volatility ticked higher but failed to put price in a clear course. It is still trading within the symmetrical triangle consolidation previously highlighted but might be showing some upside.

The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance is to the downside. In other words, support is more likely to break than to hold. In that case, price could fall by the same height as the triangle, which spans $3,850 to around $4,050.

However, price is trading above the 100 SMA as an early indication of bullish momentum and might be poised to break past the 200 SMA dynamic resistance as well. Bitcoin appears to have closed above the triangle top but it could be too soon to see if this is not a fake out.

RSI is in the overbought zone and looks ready to move south to signal a pickup in selling pressure. There’s plenty of room for the oscillator to head lower before reaching the oversold region, which means that there’s plenty of time for sellers to stay in control.

Meanwhile, stochastic is just on the move up to show that bullish momentum is in play and could stay on until overbought conditions are seen. This oscillator has some ground to cover before indicating overbought conditions or exhaustion among sellers.

Technical indicators have been giving mixed signals and analysts have mixed forecasts as well. Tom Lee of Fundstrat maintains that bitcoin bulls will be back this year while others point to similarities between current price action and the 2018 bitcoin crash.

Factors that could lead to a bitcoin rally include the Bakkt platform and Fidelity’s institutional offering, but so far traders are still holding out for actual updates on how these are turning out. Any evidence of a surge in volumes could draw bulls back in, but there is still a lot of hesitation evident in the markets these days.

Others noted that bitcoin has been repeating its price action in November last year where bitcoin was stuck around the $6,400 mark before making a nearly non-stop slide to the $3,200 area.

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Bitcoin (BTC) Price Analysis: Near-Term Upside Targets

Bitcoin is bouncing off a short-term area of interest visible on the 1-hour time frame. This could keep it on track towards testing the next upside targets marked by the Fibonacci extension tool.

Price is closing in on the 38.2% level at the $4,000 major psychological mark, which might serve as a take-profit point again. The 50% level lines up with the swing high around $4,040 that might also lead cautious buyers to book profits. Stronger bullish momentum could take price up to the 61.8% Fib at $4,062.80 or the 78.6% level at $4,100. The full extension is located at $4,168.70.

The 100 SMA is above the longer-term 200 SMA for now to indicate that the path of least resistance is to the upside. However, the gap between the indicators has narrowed enough to signal weaker bullish momentum and a potential bearish crossover. In that case, price might dip below the area of interest again and head back to the lows at $3,770.

RSI appears to be heading south even without hitting the overbought zone, indicating that sellers are eager to return. Stochastic is also heading lower to indicate that bears have the upper hand and could take bitcoin further south, especially since the oscillator has plenty of ground to cover before reaching oversold levels.

Bitcoin traders appear to be holding out for major catalysts that could confirm that the bull run isn’t over, as price would likely to clear several upside barriers before drawing more buying interest.

For now, the focus seems to be on the drop in volumes that is weighing on volatility. According to CoinMetrics.io, the decline in bitcoin transaction count has coincided with the end of VeriBlock’s testnet phase. This startup accounts for 25-40% of bitcoin transactions, which is a pretty hefty amount for its size. Testing ended on March 4 and the daily transaction count dropped 21% then.

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Bitcoin (BTC) Price Analysis: Bears Defend Resistance Again

Bitcoin has formed lower highs and higher lows to trade inside a symmetrical triangle pattern on the daily time frame. Price has once again been rejected at the triangle resistance, so it might be setting its sights back on support.

The 100 SMA is below the longer-term 200 SMA on this daily time frame to indicate that the path of least resistance is to the downside. This confirms that resistance is more likely to hold than to break or that support is more likely to break than to hold. However, the 100 SMA lines up with the triangle bottom around the $3,800 level to add to its strength as support.

Still, a break below this area could spur a drop that lasts by the same height as the chart formation, which spans $3,200 to around $4,300. Similarly a  break above the resistance around the $4,000 major psychological mark could be followed by a climb of the same size.

RSI is pointing down to indicate that sellers have the upper hand, which might be enough momentum to drag bitcoin back to support. On the other hand, stochastic is pointing up to signal that buyers have some energy left to make another attempt at breaking above the triangle top.

Bitcoin analysts are starting to warn about further declines in the cryptocurrency price as the $4,000 barrier seems a tough one to crack. Some are predicting that it could go as low as $1,850 before having a chance of bottoming out and attracting stronger volumes.

However, it’s important to note that Fidelity might be working closer to launching its institutional platform anytime this month, which might draw big inflows from banks and funds. Further delays, however, could weigh on the already feeble optimism in the industry and spur a larger wave of profit-taking.

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Bitcoin (BTC) Price Analysis: Buyers to Defend Channel Floor?

Bitcoin is still trending higher as it forms higher lows and higher highs inside an ascending channel. Price is still hovering close to support, though, so traders might be deciding on a bounce or a break.

A bounce could take bitcoin back to the channel top and latest highs around $4,300 while a break lower could spur a reversal from the uptrend. The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance is to the upside. In other words, support is more likely to hold than to to break. These moving averages are also close to the channel support to add to its strength as a floor.

RSI is heading down to signal that selling pressure is in play. This could be enough to spur a break below the $3,800 area and sustain a slide to the next area of interest. Stochastic is also heading lower after reaching the overbought zone, indicating that buyers are exhausted and willing to let sellers take over.

Bitcoin is struggling to sustain its recent rallies as buyers are waiting to get more developments in the industry. There is still some positive sentiment and anticipation for institutional investment but these expectations will have to be met with actual updates in order to give the rallies any traction.

The lack of any significant updates this week could force bulls to give way to bears and spur deeper pullbacks to longer-term inflection points. Forecasts seem more mixed these days, with some maintaining the near-term $5,000 estimate and others predicting that it could fall as low as $1,850 if support levels break.

Reports also revealed that revenues of bitcoin miners have fallen to new lows in February, down 10% since the start of the year. The latest research of Diar also reports:

“Bitmain’s latest flagship miner that began shipping at the start of the year, the s15, has already sold out twice-over with the next batch set for shipment in April.”

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Bitcoin (BTC) Price Analysis: Another Attempt at Neckline Break?

Bitcoin might be making another attempt to confirm the long-term double bottom reversal pattern as it heads back to test the neckline resistance. A break higher could confirm that a climb of the same height as the chart formation might follow.

The 100 SMA is still below the longer-term 200 SMA on the daily time frame to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Still, price is moving above the 100 SMA as an early indicator of bullish pressure. The gap between the indicators is also slowly narrowing to reflect weakening selling pressure.

Price would need to clear the $4,300 barrier next to signal that an uptrend might be due. RSI seems to be turning back up and not inclined to keep sliding below the center line, so bullish pressure might be returning. Stochastic is heading up without reaching the oversold region also, indicating that buyers are eager to return.

Bitcoin might be drawing support from another set of bullish commentary as near-term support levels continue to be defended. Many are pointing to the end of “crypto winter” and the start of “crypto spring” as other coins are also seeing similar positive action, indicating that prices may have indeed bottomed out.

This sentiment is also supported by a handful of positive developments and a lot of anticipation for institutional investment. However, Mayne, a popular cryptocurrency analyst on Twitter, cautioned:

“$BTC found support at the yearly open and is now rejecting from the breaker I wanted to short at, ended up being impatient and shorting lower. Above the breaker, BTC looks good for $4200-$4400. If we reject and lose $3700 I wouldn’t want to be long anything.”

As it is, Facebook founder Mark Zuckerberg suggested they might create their own digital asset on the social media platform.

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Bitcoin (BTC) Price Analysis: Bounce or Break at Area of Interest?

Bitcoin is currently hovering at an area of interest at the middle of its range on the 1-hour time frame, still deciding whether to bounce to the top or head back to support.

The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that the near-term resistance is more likely to break than to hold, sending bitcoin up to the highs near $4,300.

Then again, the moving averages might simply be oscillating to reflect range-bound action. Still, bitcoin is above both indicators, so these could keep holding as dynamic support levels near the area of interest. A break below this, however, could spur a drop to the range support around $3,770.

RSI is just making its way down from the overbought zone to indicate that selling pressure is returning. This could provide enough bearish momentum to take price below the range support and even a longer-term slide. Stochastic, on the other hand, is just making its way out of the oversold region to signal that bullish pressure is present and might even take price beyond the recent highs.

Bitcoin seemed to make a big retreat from the February rallies, but it is looking to be a major retracement that is now completed. Price could be due to test the nearby upside targets or resume the longer-term rebound.

Recall that several analysts have been calling a bottom in bitcoin so far this year, anticipating that the pickup in institutional interest spurred by the launch of Fidelity’s platform could be enough to shore prices higher.

However, the recent rally in bitcoin is being pinned on the strong climb in litecoin, which is having an overall positive effect on cryptocurrencies across the board lately.

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Bitcoin (BTC) Price Analysis: Bulls Defend Area of Interest, Upside Targets

Bitcoin looks ready to resume its earlier rally as it found bullish energy at an area of interest or former resistance turned support. With that, price could set its sights back on the upside targets marked by the Fib extension tool.

The first target at the 38.2% Fib extension is at $4,110.2 then the 50% level is at $4,215. The swing high lines up with the 61.8% Fibonacci extension at $4,321. Stronger bullish momentum could take bitcoin up to the 78.6% extension at $4,471.2 or the full extension at $4,662.3.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. Then again, the gap between the moving averages is narrowing to indicate that bullish momentum is fading. Still, price is above the 100 SMA as an indicator of bullish pressure.

RSI appears to be turning lower after a brief stay in the overbought zone. Turning lower could encourage sellers to return and push bitcoin back to the swing low at $3,400 or lower. Stochastic is still heading up but also testing the overbought zone to signal exhaustion among buyers.

Bitcoin struggled to sustain the bullish momentum throughout February which was seen to be spurred by an improvement in sentiment and upbeat forecasts. Still, there is a lot to look forward to, particularly the launch of Fidelity’s institutional platform that is widely expected to bring in big volumes from banks and funds.

Several analysts are still of the opinion that price is bottoming out, and it also helps that members of the tech industry have been optimistic about the long-term prospects of cryptocurrencies. Traders are likely holding out for concrete developments before piling on long positions from here.

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Bitcoin (BTC) Price Analysis: Next Downside Targets

Bitcoin recently broke below a bearish flag continuation pattern to signal that further losses are in the works. Price could see a same drop as the height of the flag’s mast, which spans $4,300 to $3,800.

The 100 SMA is still above the longer-term 200 SMA, though, so the path of least resistance is to the upside. In other words, bullish momentum is still in play and could allow the climb to resume. Then again, bitcoin has fallen below the 100 SMA as an early indicator of selling pressure and the gap between the moving averages is narrowing to reflect weakening bullish energy.

Price looks poised to test the 200 SMA dynamic support next, and a break below this could send it down to the next area of interest around $3,700. Further declines below that point could drag bitcoin to the next support zone around $3,400 or until the $3,200 lows.

RSI is already indicating oversold conditions, though, so sellers might need to take a break soon and allow buyers to take over. Turning higher could confirm that bullish pressure is kicking back in and that support levels would hold. Stochastic is heading lower and has some room to move south before reaching the oversold region, so a larger dip is still a possibility.

Bitcoin bulls seem to be disappointed over the lack of momentum in the February rallies, taking the dip as a chance to book profits instead. Still, there could be good reason to stay optimistic as many are looking forward to a pickup in institutional investment in the months ahead.

As it is, Fidelity is said to be on its final testing phase before launching its platform that could allow banks and big funds to make bets in the bitcoin space. However, PayPal and Visa have more recently warned that bitcoin presents a “ludicrous” challenge.

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