After the panic fall Bitcoin has recovered very fast. Bitcoin is now trading at $6500 and gains more than 20% in a single day on 19 March. This is a very good sign of reversal and the largest cryptocurrency broken the $6000 psychological resistance.
In the meanwhile, Bitcoin has gained more than 20% in a single day and more than 60% from the bottom of the $3700. Here is a detailed Bitcoin Price analysis.
The total cryptocurrency market cap has increased by $40 Billion from the bottom of 13 March. All the other financial markets are suffering from the COVID-19 slowdown. Global stock markets, commodity markets, and Forex markets have seen a lot of volatility in the past couple of weeks. The stock markets are still struggling to find a bottom for reversal.
Bitcoin Price Analysis on Weekly Chart
On the weekly chart, there is a possibility of a symmetrical triangle. Bitcoin price just tested the bottom trendline of the triangle and gets a very good reversal. If Bitcoin able to hold the current levels of $6000 the bulls will try to push the price higher. If the bulls are able to break the upper trendline of the triangle then we may see new buying and the price will increase drastically.
Bitcoin is trading above the 200 weekly MA (Moving Average) which is a good sign. In January 2019 Bitcoin respected the 200 weekly MA and not trade below that. The nest resistance zones for Bitcoin are $6300-$6500 which was the close of the previous weekly candle makes it stronger.
The bulls will try to break the resistance zone but if failed we may see a leg down to $5000-$5500 range. The markets need to close above the resistance zones for further increment. The next resistance zone is $7500-$7800 where the market may see heavy selling and fresh short calls. The next few weeks are very crucial for Bitcoin to decide the market trend.
Bitcoin Price Analysis on Monthly Chart
Bitcoin’s monthly chart showing the price rejection on $3700 zones and the market needs to close above $6400 to remain in the bullish pattern. There is a strong support zone around $6200-$6400 zones on the monthly chart.
Bitcoin is also able to defend the 50 monthly MA, the price tested the 50 MA and give a strong reversal.
Bitcoin halving will happen in the next 45-50 days and the block per reward will be reduced by 50% (from 12.5 BTC to 6.25 BTC). The halving will reduce the selling pressure of the market and increase the cost of mining, so the price of Bitcoin needs to increase in order to support the miners.
The Bitcoin market will see a pump to $9000-$10,000 before halving. Tighten your seat belts and enjoy the wild rides.