Bitcoin Breaks below the support at $5000 and it’s time to worry. BTC is currently pushing lower, may lose further value in the coming days. Let’s check Bitcoin Technical Analysis for more levels and insights.
March 16, 2020 | AtoZ Markets – Bitcoin is currently residing near $4500 area After Bitcoin Breaks below $5000 area impulsively. The price has rejected $6000 resistance area after the Asian market opened today and may decline further lower towards the nearest support level.
Bitcoin price crashed almost 52% recently. It is the most massive crash of Bitcoin’s history since it started trading. The reason behind this massive fall is the effect of the Coronavirus outbreak which impacted the global economy. Moreover, the Gold and silver, which known as a safe-haven market, has also seen an impulsive selloff.
Bitcoin Breaks Below Strong Support
BTC is now trading at $4500 area and continuing lower. After the price rejected $6000 resistance area Bitcoin Bearish pressure resumed.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, the price is currently residing near $4500 area. BTC Bulls are struggling to recover higher after a massive drop took place below $6500 area. As per the current price action, Bitcoin may decline further towards $4000 psychological support level.
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line. If BTC reaches lower towards $4000 area, we may see a certain bounce higher as the dynamic levels may pull the price higher as Mean Reversion. Besides, the MACD lines Bullish cross over is in the making, which may give some strength to the Bulls to push higher in the coming days.
Bitcoin Bearish Trend may Sustain after Retracement
According to the Daily chart, Bitcoin is currently trading at $4500 area and continuously declining. After Bitcoin breaks below $6500 support area, the price became volatile and impulsive. Bitcoin’s sudden drop engulfed the whole Bullish price action since it bounced from $6500 earlier. As per current price action, Bitocin may decline further towards $4000 area. If the price finds support again at $4000, BTC may recover higher towards $6500 area in the coming days.
Image: Bitcoin Daily Chart
Moreover, the RSI indicator and the Stochastic Oscillator is in an oversold position, and the Stochastic Oscillator line crosses each other upward. It is a good indication of Bullish pressure may take over the market but the price action is yet to confirm it. Besides, the dynamic level of 20 EMA is residing above the current price, along with the Kijun and Tenkan lines which may pull the price higher as a Mean Reversion. Though there is a certain indication of Bullish intervention, it is still not confirmed when the Bulls may strike back.
To conclude, Bitcoin is currently pushing lower quite impulsively. Until the price reaches a strong bottom and manages to bounce higher, the Bears may continue to take down the Bitcoin value further.