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Bitcoin price analysis March 23 to 29: if the crypto closes above this level, it can rally to $10,000

By Rakesh Upadhyay

The bulls are attempting a reversal. Above $6,600, the possibility of a rally to $8,350 increases. However, if Bitcoin dips below $5,600, a drop to $5,000 is possible.

After the sharp fall in the week before, last week was about recovery. bulls were encouraged by the announcement of massive stimulus made by the US Fed to support the economy. Along with the US, several other nations around the world also announced measures to support their respective economies. While in the short term these steps might prop up the economy, in the long term these would only add to the global debt, which is becoming unmanageable.

By contrast, in less than two months the Bitcoin mining rewards will halve. While the world prints more dollars, Bitcoin’s supply will reduce and make it scarce, which is a bullish sign. Changpeng Zhao, the CEO of Binance, believes that the economy was already weak and the coronavirus pandemic only acted as a spark that has resulted in a global meltdown. He expects people to turn towards Bitcoin after the traders stop hoarding cash.

Travis Kling, chief investment officer of crypto investment firm Ikigai Asset Management, believes that Bitcoin will act as a hurricane insurance. Let’s do the Bitcoin price trend analysis to see the path of least resistance.

Bitcoin price technical analysis: weekly chart

Bitcoin has been trading inside a large symmetrical triangle pattern for over three years. Currently, the bulls are attempting to defend the support line of the triangle. Though the price had dipped below the triangle for 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 sustain the price above $6,500, we anticipate the momentum to pick up. Above this level, the next level to watch is $7,853.95. If this level is also crossed, the up move can reach $10,500, which is close to the resistance line of the symmetrical triangle.

A breakout of the triangle will be a huge positive as it can start a new uptrend that can result in a move to $14,000 and above it $16,000. Conversely, if the price turns down from the current levels and plummets below the support line of the triangle, it will be a huge negative and a drop to $4,000 is possible.

The Bitcoin price analysis of the weekly chart shows that the cryptocurrency is at a critical level. Let’s study the daily charts to do the Bitcoin price weekly analysis for March 23 to 29.

Bitcoin price technical analysis: daily chart

The bulls purchased the dip to $3,777 on March 13 aggressively. That resulted in a sharp move to $6,957.30 on March 20, which is an 84.2 per cent rise in about seven days. The relief rally hit a roadblock closer to the 20-day EMA.

Currently, the bulls are 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 extend to $7,853.95.

Bitcoin price weekly analysis, March 23 to 29: how to trade it

The Bitcoin price trend analysis suggests the possibility of a recovery in the next week. How can the traders position themselves to benefit from it?

Contrary to our assumption, if the bears sink the price below $5,600, a drop to $5,000 is possible. The bulls may mount strong support at this level but if it fails to hold, a drop to $4,500 and below it to $3,777 is possible.

The aggressive traders can wait for the price to close (UTC time) above the 20-day EMA before buying. Above this level, the rally to reach $7,853.95 and above it $8,350 is expected. However, as there is panic around the world, we suggest keeping the position size 50 per cent of usual. On the other hand, if the price dips below $5,600, the traders should avoid bottom fishing and should sit on the sidelines.

FURTHER READING: Cryptocurrency regulation in the UK: is Bitcoin legal?

FURTHER READING: Should you invest in blockchain? Some important tips to bear in mind

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