Price Analysis of Bitcoin

The price of Bitcoin reached $4200 yesterday, before breaking down and forming a massive bearish engulfing candle and found support at the 50-period moving average, where it is currently trading now near $3900. The breakdown was preceded by short-term bearish divergence in the RSI. Price is following a short-term ascending support line for the last 17 days and is currently trading inside a minor support area. The MACD has lost almost all of its power and is currently in the process of making a bearish cross. It is of importance to keep an eye on whether it makes or rejects a bearish cross.

Important details:

There is major resistance near $4400.

There are minor support areas near $3800 and $ 3700.

Price is above the 21, 50, 100-day moving averages and below the 200-day MA.

Price has broken above the daily Ichimoku cloud and meets support above it.

Price is following the short-term ascending support line.

On a positive note, there is a trading structure in place because since bottoming at $3400 on February 10th, the price has been following an ascending support line.

Chart Source: Tradingview, Bitfinex

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