Bitcoin began to decline sharply on March 7 and continued to plummet the next day. This led to a 10% price drop and trading below some key support levels has never been withdrawn.
Highlights of Bitcoin price
- BTC price has been broken from the trading range.
- Start C wave of A-B-C adjustment model.
- The daily RSI is falling.
- There is support at $ 7,800 and $ 7,200.
- There is a possibility of short-term increase.
BTC has been falling for the past 3 days, likely to start the C wave.
The plunge has caused prices to fall below the 200-day moving average (MA). In addition, the daily RSI was turned down at the 50 line, confirming the price is in a downtrend.
Currently, the price could have found support at $ 7,800 and the next lower support area is around $ 7,200.
On the other hand, the nearest resistance area is $ 8,250.
The current area is expected to provide some short-term relief, as it plays both support and resistance many times earlier. In addition, the 6-hour RSI reached the lowest level since December 17, 2019.
In the future, this could be the beginning of wave C. Because 5 sub waves are expected, yesterday's failure was the first wave.
The lack of a pullback so far suggests that the entire bearish wave will be sharper and can cause the price to gradually decline to approximately $ 6,700 before rebounding.
The short-term chart gives us a viable target of around $ 8,380 – $ 8,530, Fib 0.382 and 0.5 of the whole downside move.
The bullish divergence in the RSI and the bullish reversal hammer pattern indicate the possibility of price recovery.
Overall, the price of BTC is declining very fast and below many support levels. Despite the short-term rally, the long-term time frame suggests that crypto No.1 will drop to at least $ 7,000.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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