Bitcoin Again Rebounds From Strong Price Support

Omkar Godbole
Mar 27, 2019 at 11:05 UTC
Updated Mar 27, 2019 at 13:12 UTC
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  • Bitcoin has again created a higher low along the 30-day moving average line, neutralizing Monday’s bearish close below $3,920.
  • A move above $4,055 (March 21 high) is still needed to revive the short-term bullish setup. That could be followed by a rally to resistance levels lined up at $4,190–$4,236.
  • A UTC close below the 30-day moving average, currently at $3,889, would put the bears in a commanding position, opening the doors for a drop to support levels at $3,775 (March 14 low) and $3,658 (Feb. 27 low).

Bitcoin (BTC) has once more rebounded from the 30-day moving average, thwarting a bearish move that saw prices drop below $3,920 on Monday.

The move sees the crypto market leader return from uncertain ground 24 hours ago, having dived out of the $3,920-$4,055 trading range on Monday. That range breakdown coupled with the signs of bullish exhaustion on the longer duration charts had opened the doors for a deeper drop below the 30-day moving average (MA) at $3,883, as discussed yesterday.

The MA support, however, held ground despite the bearish setup, allowing BTC to climb back to $4,000. Essentially, the cryptocurrency has established a bullish higher low along the key average for the third time this month.

While the bearish case has weakened, the short-term bullish view put forward by the long-tailed doji created on Feb. 27 would only be revived if there is a strong follow through to the rebound from the 30-day MA support, preferably a break above the recent high of $4,055 hit on March 21.

As of writing, BTC is changing hands at $4,015 on Bitstamp, representing a 2.6 percent gain on a 24-hour basis. A high of $4,031 was clocked soon before press time.

Daily chart

As seen above, BTC has picked up a bid following the defense of the 30-day MA, currently at $3,889. The higher-low pattern would gain credence if the bounce ends up establishing a higher high above the March 21 high of $4,055.

That would expose the February high of $4,190, above which a major hurdle is seen at $4,236 – the bearish lower high created on Dec. 24.

On the downside, a UTC close below the 30-day MA is the target for the bears.

8-hour chart

On the 8-hour chart, BTC has breached the falling channel on the higher side and the breakout is backed by a bullish relative strength index (RSI) reading of 61.00.

So, prices may find acceptance above $4,040 in the next few hours. The bullish case, however, would weaken if the rising trendline hurdle proves a tough nut to crack.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.