Bitcoin Price and Technical Market Analysis March 23rd, 2020

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Bitcoin Price and Technical Market Analysis March 23rd, 2020

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  • Sellers managed to lower Bitcoin price below the range  $6110-6260.
  • The critical point for buyers remains at $5640 with a likely continuation of the fall to $5280.
  • An alternative scenario of growth to $6260 is possible after the price fixing above $5900.

Yesterday’s trading day on Bitcoin market ended with the price exit from $6110-6260 and updating of the local low. Without much aggression, sellers managed to lower Bitcoin price by 8%, while testing the mark $7550. As we may have felt, buyers’ aggression has gone somewhere and sometimes appeared in small timeframes. However, sharp price rebounds are not related to aggressive buying, but rather to closing sellers’ marginal positions. For example, on the hourly timeframe, we see a sharp rebound of the price on Bitcoin market, which sellers immediately covered with little effort:

Bitcoin Price and Technical Market Analysis March 23rd, 2020

In this way, buyers made sure that sellers’ intentions to keep the conquered price levels were quite serious. So, they did not counter the attempt to change the local trend. Thus, slowly but surely Bitcoin price lowered to the level of the previous start of growth. As sellers also do not show aggression, in case breakdown of $5730 fails, buyers can take the initiative and continue broad consolidation within $5730 -6260. Buyers need to fix above $5900 for this scenario. The first critical point on the way to $6260 is $6110. Though, it is too early to talk about such a scenario.

On the daily timeframe, we see the beginning of the growth correction from 18 March:

Bitcoin Price and Technical Market Analysis March 23rd, 2020

So far, sellers are enthusiastically lowering the price. It is noticeable both in the nature of the fall and the volumes on the daily timeframe. The main targets of our scenario will remain valid – the test of $5640 with a likely continuation of the fall to $5280.

According to the wave analysis in Bitcoin market, we see the price approaching to the correction of the previous growth 38.2%:

Bitcoin Price and Technical Market Analysis March 23rd, 2020

If this level of Fibonacci happens with a sharp increase in volumes and activation of buyers, we probably won’t see $5280 in the next few weeks. The local fall wave from 22 March is in 0.618 times shorter than the previous fall wave. And it could theoretically complete its formation in the current price range. Therefore, we expect how buyers will react to yesterday’s daily candle today. Tomorrow we will sum up the results of today’s Bitcoin price trading.

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