Technical analysis of Bitcoin price Wednesday, March 21, 2018

The price of Bitcoin reports an interesting increase of 7.28%, positioning the value above $ 9084. With short-term uptrend.

Highlights

  • The price of Bitcoin seems to have gone through a complex reverse pattern of head and shoulders.
  • This adds to the recent bullish signals seen in the short-term time frames.
  • The price has also broken the falling trendline and the moving averages, which seem to be making a bullish cross.
  • The price of Bitcoin shows a bullish signal in the short term after another, and this momentum could continue to accumulate as it breaks more bullish barriers.

Technical indicators

The 100 SMA is still below the 200 SMA in the longer term within the 1 hour time frame to indicate that the path of least resistance is downward. However, the gap has been reduced significantly to indicate a potential upward crossing and a reversal.

Note that the price of Bitcoin has previously broken a falling trend line and the dynamic inflection points of moving averages. It has also moved beyond the neckline of an inverted head and shoulders formation, which is a classic investment pattern.

The pattern of the chart ranges from $ 7200 to $ 9200, which suggests that the resulting uptrend could be the same height. However, the stochastic is heading south from the overbought levels, so the price of Bitcoin could follow the same path. RSI is also coming down from the overbought region to indicate a return on selling pressure.

In that case, the Bitcoin price could still have a quick pullback up the sleeve before gaining traction in climbing. Close support levels are around $ 8,500, $ 8,000 and at the bottom of the downtrend around $ 7,200. A movement below these levels could indicate that the longer term decline is resuming.

On the other hand, a sustained bullish momentum could raise the price of Bitcoin to the next area of greatest interest, around $ 10,000. A move beyond this area could lead to a test of the key level of $ 12,000.

So far, there have been no negative reports from the G20 Summit regarding cryptocurrencies. World leaders agreed to look more closely at this industry, but did not come to make a strong effort for stricter oversight.