Bitcoin false break above $6500 area indicates that Bears are still in control. Bitcoin still struggling to regain Bullish momentum. Let’s check Bitcoin Technical Analysis for more levels and insights.
March 23, 2020 | AtoZ Markets – Bitcoin is currently trading at $5890 area after a false break above $6500. BTC is still quite indecisive and volatile while staying inside the Descending Channel. The Bulls may struggle further until $6500 is breached again.
Bitcoin has been under pressure since the beginning of 2020. BTC’s value has seen a lot of ups and downs since its commencement. The last massive fall happened to BTC is due to the Coronavirus outbreak. Bitcoin fall from safe-haven to its worse day near $3800 area in this world’s economic crisis. Moreover, BTC investors are also in fear while facing this crisis. As we all know, the crypto market is decentralized, and no government or financial institution can control these cryptocurrencies.
Bitcoin False Break Indicating Bears Presence
Bitcoin is currently residing near $5890 area and trying to decline further. After breaking above the $6500 area, BTC Bulls failed to sustain further and declined. As a result, Bitcoins false break indicates that Bears are still in the market.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin is currently trading at $5890 area and currently very corrective and volatile. After Bitcoin false break took place above $6500 area, the price became indecisive. As per the current price action, if the price can break above $6500 area with an impulsive Bullish bar, the Bullish pressure may regain higher towards $8000 area. Alternatively, if the price break below $5600 area with an impulsive Bearish bar, the Bears may continue lower towards $4500 area in the process.
Furthermore, the dynamic level of 20 EMA is residing near the current price and not showing any definite indication. The MACD lines are residing above the 0.00 level while intersecting with the histogram. Additionally, the Stochastic Oscillator line are near oversold level 20, and Bullish cross over may occur. As per the current market context, price requires a breakout to form a definite trend in the coming days.
BTC Is Still Inside the Descending Channel
According to the Daily chart, BTC is currently residing near $5890 area after a Bearish rejection last week. Recent Bitcoin false break is an indication of Bears presence in the market. As per the current scenario, BTC is currently quite indecisive and corrective. So, if the price breaks above $6500 with a daily close, the Bulls may take the price higher towards the descending channel resistance around $7000. Though the overall trend is Bearish, there are certain indecision in the market. As the trend sustains, the price may continue lower towards $4500 area.
Image: Bitcoin Daily Chart
Furthermore, the dynamic level of 20 EMA is residing above the current price, which may pull the price higher as the price revert back to the Mean, 20 EMA. The MACD lines are residing below the 0.00 level and may intersect each other as a Bullish Cross over in the coming days.
To conclude, BTC false break above $6500 area made the price currently indecisive. Despite the Bearish trend in place, Bulls may recover higher at least towards the dynamic level before Bearish trend continues.