Bitcoin (BTC) Technical Analysis: Breaks $3,800 Support, Are We in For Another Red Week?

Published on Unknown Date by Cryptovest Staff

Disclaimer

Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.

Bitcoin is starting off the week in the red following a sudden $130 drop in value during the early hours of this morning. The sharp price movement appears to have sparked off a bear market rally which has so far driven the asset through its psychological $3,800 support, and increased trading volumes by over $1 Billion.

If bears succeed in breaking this critical level then it is highly likely that BTC will continue to extend its losses throughout the rest of today, and possibly into the rest of this week. The pressure is on.

Looking at a number of indicators over 4HR candles it appears that bears have taken back control of the asset and could be about to reverse the current trend if support doesn’t arrive soon.

  • BTC is oversold on the 4HR RSI: The 4HR RSI indicates that BTC might be in oversold territory.
  • Strong bearish divergence on the MACD indicator: The MACD shows a strong signal of bearish divergence.
  • Almost a bearish crossover on the 9/20 EMA lines: The exponential moving average lines hint at a potential bearish crossover.
  • Parabolic SAR dots above the price action: The Parabolic SAR indicators are positioned above BTC’s price, suggesting further downside.
  • Aroon Down line is holding high above the Aroon Up line: This technical indicator confirms the bearish momentum.
  • Price action has fallen below the central MA on the Bollinger Bands: BTC’s price breaking below the central moving average adds to the downtrend signals.

From this it appears likely that the increasing intraday selling pressure will eventually overwhelm BTC buyers and drive the asset through the critical support. Bullish investors have already had their spirits broken by the heavy sell off that transpired on February 24 and right now there just doesn’t seem to be any obvious bull market catalysts to help boost trading confidence.

Bitcoin (BTC) Price Targets

All ROIs are calculated from the asset’s current value at $3,803 (AToW).

  • PT1: $3,800 (0.0%)
  • PT2: $3,750 (-1.39%)
  • PT3: $3,650 (-4.02%)
  • PT4: $3,580 (-5.86%)