- Bitcoin is under healthy consolidation and bulls are still in control
- Bitcoin dominance has increased to 65% over the last few days
- The price is still getting rejected from the 12-period EMA on the daily chart
*Price at the time of writing
Bitcoin has been trading sideways for the past few days basically setting a daily bull flag at this point. The bulls are struggling to stay above the daily 12-period EMA but the price is not being rejected heavily either.
The daily trading volume has been dropping significantly for the past 2 days which could indicate an explosive move is nearby. Tomorrow, the traditional stock market will open and might have an impact on the crypto market.
Bitcoin Technical Analysis
What has been going on?
On March 19, Bitcoin was able to see a massive 14% price surge followed by more continuation up to almost $7,000. The bulls were rejected from $6,900 but the bears didn’t see any sort of continuation and the bulls have been able to maintain Bitcoin above $6,000 for the past 3 days.
Bitcoin is currently trading at $6,247 and its dominance over the other altcoins has been increasing for the past week from 63% up to the current 65.1%
Bitcoin price short-term prediction: Bullish
There is still seems to be some correlation with the traditional markets as Bitcoin has been pretty stale this weekend, which is when markets are closed. The coronavirus outbreak is only going to get worse and most governments have already stated that but the crypto market seems to have broken a little bit of its correlation with stocks and could continue its bullish path even if the other markets crash tomorrow.
The daily MACD has turned bullish for the first time since February 15 but the bulls have not been able to break above the daily 12-period just yet. Although the price was rejected 4 times, the bears didn’t see enough continuation either. The RSI remains low at 40 points and will not be an issue for the bulls any time soon.
The bulls are still in control of the 4-hour chart which is in an uptrend and has been able to defend the 12-period EMA almost 10 times in a row now. The trading volume is clearly declining and it is currently extremely low which usually indicates a big move is coming.
Where is the resistance towards the upside
How much resistance are the bulls currently facing? Not a lot really, the most notable resistance point is at $6,900 and $7,000 psychological level. The $6,234 area (daily 12-period EMA) is also extremely important as the bulls have not been able to close above it for the past 4 days.
The next resistance is set at $7,042 which means the area between $6,900 and $7,042 is a heavy resistance area.
What are the technical indicators showing?
The daily MACD has turned bullish for the first time in a month which is a really good sign, the daily RSI is not going to offer any resistance to the bulls in some time as it is only at 40 points and the EMAs, although still bearish and rejecting Bitcoin, are not helping the bears that much as they are not seeing any continuation after the rejections.
Previous BTC analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent articles about the price of Bitcoin:
Bitcoin is under healthy consolidation and bulls are still in control
Bitcoin dominance has increased to 65% over the last few days The price is still […]