Bitcoin Price Technical Analysis (March 18th): Stuck Between Support and Resistance

Looking at the chart below, we can see that BTC is trading at around the $4,000 mark. The price is contained between channels with some false breakouts, and an upper limit acting as resistance at $4,161 and lower limit acting as support at $3,765. Since there could be false breakouts, it is not recommended to take a long position immediately after the breakout.

Dow Theory

According to Dow Theory, BTC is currently appearing in an accumulation phase which is an area from where the price can easily shoot up, and is generally considered a great buying point, this is the time when informed investors (experienced traders and institutions) are usually entering their long positions. The price movements during the accumulation phase are traditionally slow. The accumulation phase often signals the end of a downtrend.

Bollinger Bands

Price is moving between the channels with the upper limit acting as resistance and middle average line acting as support. We also see that the channel is shrinking, indicating lesser volatility which means no big uptrend or downtrend is expected in the near 2-3 weeks, and suggesting only swing trading opportunity.

Moving Average

Taking 9-day period moving (blue) average with 21-day period moving average (red), a bullish crossover is seen; and the price is above the 9-day period moving average indicating upward trend. So we can expect an upward rally with a high probability.

Conclusion

Considering all the factors above, it appears that Bitcoin is currently stuck in a sideways trend, with an upper limit acting as resistance at $4,160 and a lower limit acting as support at $3,765; so this opportunity can be used for swing trading.

Also, in sideways trend it is very important to pay close attention to Bollinger bands movement, and as the band will start expanding look for momentum as it will decide future trend. For long term investing it is good to buy around support and hold. Using Fibonacci and other above mentioned indicators, we can expect the price to reach $4,503 in 2 months or so.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 3659.7 3771.2 3929.5 4041.1 4199.4 4311.0 4469.3
Fibonacci 3771.2 3874.3 3938.0 4041.1 4144.2 4207.9 4311.0
Camarilla 4013.8 4038.5 4063.3 4041.1 4112.7 4137.5 4162.2
Woodie’s 3683.3 3783.0 3953.1 4052.9 4223.0 4322.8 4492.9

Technical Indicators

Name Value Action
RSI(14) 42.762 Sell
STOCH(9,6) 66.219 Buy
STOCHRSI(14) 94.451 Overbought
MACD(12,26) -548.200 Sell
ADX(14) 32.521 Buy
Williams %R -27.613 Buy
CCI(14) 106.5483 Buy
ATR(14) 393.4984 Less Volatility
Highs/Lows(14) 33.4464 Buy
Ultimate Oscillator 61.817 Buy
ROC 24.155 Buy
Bull/Bear Power(13) -120.9859 Sell