Critical obstacle to Bitcoin price recovery: Current BTC technical analysis

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Bitcoin (BTC) price started the new month by rising more than 2 percent on the first day of March. However, this bullish attempt towards the $24,000 region was followed by a sharp decline. Accompanied by an important development in the traditional markets, the price of the leading crypto money Bitcoin broke the important support levels around $ 23,300 and $ 22,500 without any difficulty. This decline took the price as high as $22,000. In the last two days, it is trading in a narrow range with some recovery.

On the daily chart of the BTC/USD pair we see that. Bitcoin price drew a big red candle on the chart the previous day. As a result of the 4.72 percent decline, the leading crypto money recorded the lowest level of the day at $ 22,000. In the last two days, it has been trading above $ 22,300 with some recovery. Although he tried to make a leap today, he fell short.

Bitcoin price support and resistance levels

For Bitcoin price support and resistance levels, let’s look at the BTC/USD 4-hour chart. This chart shows the narrow trading range after a sharp decline. Now it has the $22,400 resistance right in front of it. Below, $22,300 provides support. So the BTC price is consolidating in the narrow trading range of $100. Analysts, on the other hand, do not rule out the possibility of the Bitcoin price falling to $ 21,000 or $ 20,000 in the short term. Despite this, the price of Bitcoin is resisting to fall further. In the last few hours, a jump to $22,660 has also returned to the aforementioned trading range.

After these developments, the first short-term support for Bitcoin price is now around $22,300. The most important support further down is at $21,600. Of course, for this, it must first break the psychological level of $ 22,000. He now has the $22,400 resistance in front of him. This is a worrying situation for BTC price as this important support turns into resistance. $23,000 and $23,300 can now be expected to act as the main resistance. For the reason for the recent decline, see:

In summary, Bitcoin price support and resistance levels are as follows:

  • Support levels: $22,300 and $21,600
  • Resistance levels: $22,400 and $23,000

BTC/USD technical indicators

From the technical indicator, the MACD is attempting to move into some bullish territory. The RSI indicator remains above the 30 level, or oversold.

Is Bitcoin technical analysis necessary?

Bitcoin technical analysis gives us very important information about which way the price is headed. Essentially, doing Bitcoin technical analysis is very important to lose little in the falls, let alone make money.

When doing Bitcoin technical analysis, there are many indicators, patterns, and analysis methods that traders use. Some of them are as follows:

What is a moving average?

Moving avarages (MA) are the most frequently used and oldest technical indicators. One of the most important indicators used in stock markets and forex markets, that is, in traditional commodity and fiat currency parities, is MA.

This indicator analyzes the price movements that have taken place from the moment you are to a certain point in the past. It averages the data in the range you specify and marks it on top of the table of instantaneous values. Related: What is the moving average on the Bitcoin chart and how does it work?

What is the Elliott Wave Theory?

The Elliot Wave Theory is a theory in which Ralph Nelson Elliot predicted by analyzing the recurring wave patterns of mass movements. According to him, there is a certain reason for the movements in the market. And the movements that occur create important data that can also affect the movements that follow them.

How is Elliot Wave analysis done?

Although movements in the market do not always follow the same line, price changes always maintain a certain structural pattern. This pattern is called the “wave pattern.”
Analysts also use this theory to predict future price movement by detecting swarm psychology denoted by waves.

According to the theory, a trend is formed by five main waves. And it is assumed that each large wave consists of five small waves.

What is a double bottom pattern on the Bitcoin chart?

The double bottom pattern is known as the symmetry of the Double top formation. It occurs at levels where prices bottom. A shape similar to the letter “W” is formed in the graph.

How is a double bottom formation formed?

At the first bottom, trading volume is at the highest level. With the purchases coming from the first bottom, the market is on the rise; however, during this rise, the trading volume continues to shrink. From the lowest level of the second bottom, the volume begins to rise again with the price. Usually the 2nd bottom is slightly above the 1st bottom. In the double bottom formation, the 2nd bottom may be formed with softer price movements than the first. In the double bottom formation, the trading volume is expected to rise as the prices returning from the 2nd bottom exceed the resistance level.

What is a double peak formation?

The Double Peak Pattern is known as the symmetry of the Double Bottom Formation. It occurs at levels where prices peak. The graph consists of a shape similar to the inverted letter “W”.

What is the evening star formation?

The Evening star is a three-bar bearish pattern. Considered one of the most reliable candle patterns, the evening star emerges at the end of an uptrend.
A long bullish candle (white candle) is followed by a white or black candle with a small body and a long shade compared to the previous one. The third candle that follows is the bearish candle. The third candle is located inside the body of the first candle.

What is a Bearish-Bullish Engulfing pattern?

Engulfing is a reversal pattern consisting of two candles. That is, it occurs at the end of upward or downtrends. If formed at the end of the downtrend, the first candle will be red and the second candle will be green. If it occurs at the end of the uptrend, the opposite happens.
Bearish Engulfing is a pattern that signals that an uptrend is over and a downtrend is about to begin.

What is the inverted shoulder head TOBO?

This pattern indicates that a downtrend is about to end and an uptrend will begin. The opposite, the Shoulder-Head pattern (OBO), indicates that an uptrend is about to end and a downtrend will begin.

What is Golden Cross?

A golden cross, which is the opposite of death cross, is the 50-day moving average cutting the 200-day moving average upwards, that is, rising above it.

Why is the golden cross important?

Because it is a long-term bullish indicator and the intersection indicates that the downward movements have ended, that the bullish cycle has most likely started in that coin.

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