After the sharp decline in the previous week, the last week was about recovery. Bulls have been encouraged by the announcement of massive Fed stimulus measures to support the economy. In addition to the United States, several other nations around the world have announced measures to support their respective economies. While these steps could support the economy in the short term, they would only increase global debt in the long term, which is becoming unmanageable.
In contrast, Bitcoin mining rewards will halve in less than two months. As the world prints more dollars, Bitcoin's supply will decrease and run out, which is a bullish sign. Changpeng Zhao, Binance's CEO, believes the economy was already weak and the coronavirus pandemic was just a spark that led to a global collapse. He expected People who turn to Bitcoin after the traders stop hoarding cash.
Travis Kling, chief investment officer of crypto investment firm Ikigai Asset Management, believes Bitcoin will act as a hurricane insurance. Let's do the bitcoin price trend analysis to determine the path of least resistance.
Technical analysis of the Bitcoin price: weekly chart
Bitcoin has been trading in a large symmetrical triangle pattern for over three years. The bulls are currently trying to defend the triangle's support line. Although the price had dropped below the triangle in the past two weeks, the bulls quickly pushed the price back into the triangle, which is a positive sign. This shows demand at lower levels.
If the bulls can push and hold the price above $ 6,500, we expect the momentum to pick up. Above this level, the next level to be observed is $ 7,853.95. If this level is also exceeded, the upward move can reach $ 10,500, which is close to the symmetrical triangle's resistance line.
A breakout of the triangle will be very positive as it can trigger a new uptrend that can move to $ 14,000 and above to $ 16,000. Conversely, if the price drops from current levels and falls below the triangle support line, it is a major disadvantage and a drop to $ 4,000 is possible.
The weekly chart's Bitcoin price analysis shows that the cryptocurrency is at a critical level. Let's study the daily charts to do the weekly Bitcoin price analysis for March 23-29.
Technical analysis of the Bitcoin price: daily chart
The bulls aggressively bought the drop on March 13 to USD 3,777. This led to a sharp increase to $ 6,957.30 on March 20, an increase of 84.2 percent in about seven days. The aid rally hit a roadblock closer to the 20-day EMA.
The bulls are currently trying to keep the price above $ 5,600. If successful, we expect another attempt by the bulls to push the price back above the 20-day EMA. Above this level, the relief rally can range to $ 7,853.95.
Weekly Bitcoin Price Analysis March 23-29: How To Trade
The Bitcoin price trend shows the possibility of a recovery in the next week. How can traders position themselves to benefit from it?
Contrary to our assumption, a drop to $ 5,000 is possible if the bears lower the price below $ 5,600. The bulls may receive strong support at this level, but if they don't hold, they can drop to $ 4,500 and below $ 3,777.
Aggressive traders can wait until the price (UTC time) is above the 20-day EMA before buying. A rally of $ 7,853.95 and above $ 8,350 is expected above this level. However, since there is panic worldwide, we recommend keeping the position size at 50 percent of the usual. However, if the price drops below $ 5,600, traders should avoid bottom fishing and sit on the sidelines.
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