Bitcoin dropped below $4000 area today on the Asian session. BTC reached January 2019’s support level after the U.S. Stock Market crashed. Let’s check Bitcoin Technical Analysis for more levels and insights.
March 13, 2020 |AtoZ Markets – Bitcoin is currently residing near $5200 area after a sudden decline. Bitcoin broke all psychological support levels and pushed lower below $4000 in just two trading sessions. The Bears is still on the market, and Bitcoin may struggle now to recover higher.
Bitcoin price just crashed more than 50% on the Coronavirus outbreak fears. Investors are in concern after the Coronavirus hit the world’s biggest stock market of the United States. Bitcoin collapsed below many significant support levels and tested near $3800 area against the U.S. Dollar. The price is currently recovering higher pushing above $5000 area gradually.
Bitcoin has dropped from $8000 to $3800 in just a few trading sessions. As Bitcoin is mostly unregulated, investors are quite prepared to lose most of their investments in this Coronavirus outbreak situation. Besides, most of the economist indicates Asian share market is the reason for the crash in the crypto market as Coronavirus threat is more significant over there. The whole Crypto market is in big free-fall after the U.S. ban travels to Europe and existing uncertainty in the global financial markets.
Bitcoin Dropped Record low managed to Bounce Higher
BTC is now trading at $5500 area and struggling to recover higher. After a Bearish gap this week, the Bulls failed to fill up the Bearish gap and Bitcoin dropped below $4000.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, the price is currently residing near $5600 area and trying to recover higher. After Bitcoin dropped record low, the price is now trying to recover higher above $5000 area. The price rejected from the Fibo 61.8 level, but Bulls are still trying harder to make a mark. If the Bulls can break above 61.8 Fibo level i.e. above $5700 area, there is a high chance that Bitcoin may reach $6500 in the coming days.
Moreover, the dynamic level of 20 EMA is residing above $6500 resistance area. It may act to pull the price higher as Mean Reversion. On the other hand, the MACD lines are below 0.00 level and Bullish cross over is in the making. As per current price action, there are certain indications that Bulls may recover higher if the current market flow is sustained.
Bitcoin Bulls are Still Optimistic
According to the Daily chart, After Bitcoin dropped record low, BTC took no time to recover higher. Sudden Bearish pressure was answered with Strong Bullish pressure which took the price above the psychological price level at $5000. The price is currently residing near $5700 area and trying to sustain higher above $5000. As per current price action, if Bitcoin maintains the price above $5000 area with a weekly close, there is a high chance that Bulls may recover higher towards $7500 in the coming days.
Image: Bitcoin Daily Chart
On the other hand, the dynamic levels residing quite far from the current price area may pull the price higher as Mean Reversion towards $7500 or higher in the coming days. So, the biggest question now is, can Bitcoin maintain Bullish Momentum above $5000?
To conclude, Bitcoin is currently trying to recover higher. Though the momentum is still Bearish, the Bulls may show some upward pressure towards $7500 area if the upward pressure persists further.