Bitcoin at the close of March provides clues for the future
At the end of March, the BTC rate formed a “bearish hammer” candlestick pattern on the monthly chart.
Perhaps the price is trading inside a symmetrical triangle.
Resistance and support are located at $ 6500 and $ 5800, respectively..
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Bitcoin said goodbye to March yesterday by forming a bearish hammer-shaped candle with a very long bottom wick on the monthly chart. What does it say?
Bitcoin (BTC) ended March 24% lower from the month’s opening price and the bottom candle wick was 40%.
Bitcoin: Monthly Candle for March
The main characteristics of the March BTC candlestick are as follows:
- Opening price – $ 8525
- Closing price – $ 6410
- Maximum – $ 9219
- Minimum – $ 3850
It is important to note that the amplitude of the stroke of the lower wick is 40%. This indicates the presence of strong bullish pressure on the pair below $ 6,000. However, the body of the candlestick remained bearish (24%). In general, this candlestick resembles a bearish hammer.
Although traditionally considered a bearish indicator, the price managed to stay above $ 6,450, an important support area on the long-term charts. A close below this level would have a much more serious bearish impact. In the meantime, as long as bitcoin holds above this level, it retains the growth potential..
In addition, the monthly RSI dipped towards 50. As with the support at $ 6,450, a drawdown below this line would indicate a likely bearish trend..
Short term timeframe
On the short-term charts, the price hit a high of $ 6,957 on March 15 and has been moving along the downtrend resistance line since then. At the time of writing, the pair bounced off this resistance line and started losing ground.
In addition, there is strong resistance in the $ 6500 area. Over the past two days, the bitcoin rate has unsuccessfully tried to make its bullish breakout.
And, finally, it is possible that the price is moving along the upward support line. If the bulls still fail to break through the above resistance, it may cause a pullback to this support. At the present time, such a scenario seems to us quite likely..
Thus, at the end of March, the BTC rate formed a “bearish hammer” candlestick pattern on the monthly chart, but at the same time it was able to stay above an important long-term support level. In the shorter term, the price may decline towards the support line of the likely symmetrical triangle.
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