Bitcoin sudden bearish move has taken the price below $6500. After an extended volatile phase above $7700 area, BTC broke below a significant level impulsively. Let’s check Bitcoin Technical Analysis for more levels and insights.
March 12, 2020 | AtoZ Markets – Bitcoin is currently declining impulsively after the price broke below the $7700 support area. BTC failed to fill up the Bearish gap of this week and continued lower.
Bitcoin’s Sudden Bearish Move lead the price to nose-dive more than 10% along with the U.S. equities market after Donald Trump banned flight from Europe. Moreover, Bitcoin’s sudden Bearish pressure is also considered as global market turmoil sparked by OPEC’s failure to agree to a supply cut.
As the Coronavirus infection spreading all over the Globe, the world economy is in a significant threat. Though the Bitcoin proved itself earlier as a safe-haven market like Gold, investors are now in a fear to invest further in this safe-haven. Additionally, Bitcoin has been battling against declining trading volumes which invites certain manipulation in this crisis period. As a result, Bitcoin is continuously failing to sustain Bullish momentum in the process.
Bitcoin Sudden Bearish Move indicates Further Decline
BTC is now currently trading at $6300 area and persistently pushing lower. After the big Bearish gap this week, Bitcoin Bulls failed to recover the price gap and pushed below $6500 support area. As per current price action, the Bears may sustain the momentum further.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, the price is currently residing near $6300 area after Bitcoin broke below $6500 support. Bitcoin failed to break above the dynamic level of 20 EMA, along with the Kijun line and the Tenkan line. The dynamic levels worked as a strong resistance while influencing the Bears along the way. If the price continues to fall, the Bears may take the price much lower towards $5000 area in the process.
On the other hand, the MACD lines are crossing each other but still indecisive as they are sloping lower. The MACD histogram volumes are showing sign of emerging Bullish divergence with no proper indication yet. So, if Bears can sustain lower below $6500 area, Bulls will not have much room to climb at the current market situation.
Bitcoin Bullish Trend Ended?
According to the Daily chart, after Bitcoin Sudden Bearish Move, the price is currently residing near $6300 area as Bears Continue to Decline. Bitcoin broke below the $6500 event level and fell quite impulsively. The Bears took over 100% of the recent Bullish trend from $6500 area. In this case, if Bears continue to decline, the price may push lower towards $5000 area in the coming days.
Image: Bitcoin Daily Chart
Moreover, the Stochastic Oscillators showing Bullish cross over in the making below 20 line but the MACD histogram volumes showing Bearish continuation. The indicators are quite indecisive as the price moves are very uncertain. On the other hand, the dynamic levels of 20 EMA is residing above the current price. It may pull the price higher as Mean Reversion whereas the Bearish bias turned much stronger after the break.
To conclude, Bitcoin Bears are currently quite impulsive with the current price action, which took BTC price lower by storm. The price needs to have a daily close below $6500 to confirm further down move in the process.