Technical Analysis; BTC March 26

Key Highlights

  • *Bitcoin has been trading in a bearish channel for a good time now since the beginning of the year 2018, erasing gigantic gains from the highs of $20,000. As you currently read this,  BTC could experience a short-term drop as price formed a double top on the hourly chart.
  • *BTC's price has been ranging and consolidating especially around the $8,000 regions with accumulation signs showing. For the bulls, It might mean it is about time for the rally to resume. For the bears, acceptance below $7,734 could yield a sell off to $7,200's.
  • Lower highs and lower lows also confirms that the bears are maintaining their momentum, pushing hard and are not ready to give up anytime soon.
  • Bitcoin is facing a major resistance at $8,700 on the 4 hour chart and it is currently trading well below the 100 SMA
  • In The DMI, the -DI line is above the +DI line, meaning that the market is moving downwards and the ADX is just slightly above 25 proving that the downtrend is still stronger.
  • The RSI has breached the descending triangle to the downside, signaling the BTC will likely see a downside break of the trading range
  • The Stochastic RSI is above 0.80 suggesting the RSI may be reaching extreme levels and could be signaling a pullback

Major Fundamental factors

  • Markets have accelerated the downward trend that started yesterday, currently in the red. ETH dipped below $500 level for the second time this month after reaching close to $600 on March 24. Bitcoin is below $8,000.
  • BTC has seen almost a 7.5% drop in 24hrs with about 20% lost within a month.
  • The IRS warned Crypto investors to report their earnings on their income tax return stating that crypto currency is considered as property and therefore subject to federal tax.
  • Regulatory efforts in Japan are keeping crypto investors on edge.
  • FSA mentioned that it could shut down Binance in the country for failing to secure the necessary licenses to operate. South Korea has shared the same sentiment, and if both countries push through it could severely dent volumes.

This is not a investment recommendation nor to be representative of professional expertise, but to be used as a forum for opening discussions around trading. All examples and analysis used herein are for illustration purposes only, and of the personal opinions of Cultrix. All examples and analysis are intended for these purposes and should not be considered as specific investment advice.  The RISK of loss in trading cryptocurrencies can be SUBSTANTIAL.