We think the bitcoin price has taken a slight hit this week as a result of the bitcoins that were stolen from Evolution Marketplace customers last week. The price however seems to be picked up.
March 26th Bitcoin Trading session
We predicted the bitcoin price would test 240 as its strong support level. The aforementioned level had previously incited a strong bullish rally and therefore was hinting as a reliable downside risk after the previous upside correction towards 250. We also feared that that the bitcoin value was extending its downward momentum and retesting the presumed bottom near 236. The latter however didnt happen, thanks to favorable buying pressure near the 240-242 area that helped stage a wonderful recovery.
The Bitcoin price unexpectedly broke out from the bearish range towards 236 and started to move upwards, setting its resistance break just near 248. The market started to move and the price managed to pass above the psychological upside risk near 250, forming a daily high near 252.
At press time, the bitcoin price is hinting to extend its bullish correction, and is hoping to retest 258 as its next upside target.
What to Expect Today?
As you can see in the chart above, the bitcoin price is trending below the 50H SMA, while the RSI has just crossed above 50 to establish a neutral scenario. Meanwhile, the MACD blue curve has also moved right above the saffron signal curve, though is currently situated in a negative territory. The technical indicators indicate a near-term bullish scenario, waiting to be shaken by a single large sell-off.
As price holds itself above the 250 support level, we can expect a smoother ride towards the initial upside target of 258, or a value just shy of it. We therefore recommend our readers place their long positions just below the aforementioned level (you can also wait for a better entry point in case smaller corrections appear, though make sure the entry point remains above 251).
If the price attempts a reversal from the current channel, price is expected to retest the 240-242 area once again. Setting your stop loss near 245 will ensure a timely exit with a nice risk reward.
Conclusion (On Daily Charts)
Current Mood: Bearish
Moving Averages: Neutral (6 Buy 6 Sell)
Technical Indicators: Strong Sell (1 Buy 7 Sell 3 Neutral)
Where do you think the price will be at the end of March?