Bitcoin bullish momentum is slowing down below a strong short-term resistance price zone. Are the bears lurking around?
March 12, 2019 | AtoZ Markets - The cryptocurrency market bullish run has retreated after most coins couldn't hit above their January peak prices. This week so far, there has been a lack of strong bullish momentum needed to break above short-term barriers. The market is now primarily driven by short-term speculative sentiments derived from the technical analysis. Crypto market capitalization dropped from $133 billion to $132.5 billion.
Bitcoin spent nearly half of this month trying to break above 3900 but was unsuccessful in the attempts. Unless a strong bullish run happens above 4500, Bitcoin and the altcoins will most likely drop further. It remains to be seen whether the price would drown to a new low or rise to a multi-month high.
What has happened to Bitcoin in the last 7 days?
Bitcoin price has remained almost unchanged compared to the average of the last 7 days. According to data available on coinmarketcap, Bitcoin currently trades at 3898, a bit below 3900 which was the average of the last 7 days. It hit above 3900 on Friday before it dropped slowly below 3800 recorded today. Market cap of $68.22 billion is within last week range. Trade volume also recorded a very low change compared to last week. The current price activities have created a strong resistance zone at 3900-4000. The more the sideways move continues below 3900-4000 resistance zone, the more doubtful the bulls get. The long-term bearish market sentiment is still very strong. The bears are thus, lurking around to pounce on the next bearish opportunity.
Bitcoin technical analysis and important price levels
The chart above shows the current rally might not be the much-expected price recovery. After price dropped from 9500 to 6100 in late June, it spent the next 4 months sideways, completed a triangle pattern and broke below 6000 in November. After the breakout came another low at 3100 in December. The current rally started in December and has so far exhibited properties of a sideway bounce just like we saw between June and November 2018.
The current bullish correction will be 3 months old on Thursday. Sideways move most times take more time to complete than a trendy move thus the probability that the current move will be followed by another dip to a new low is high. However, the corrective pattern is not yet complete. A triangle or zigzag pattern is very much likely. If a zigzag completes, the current surge will continue to 4400-4500 before the bears take over. If a triangle pattern will be formed, then the current rally will not go higher than 4200 January high. We might see the current rally continue in the next few weeks. Unless a sudden break happens into the 4500-6100 territory, a new low is almost certain.
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