After a bit of correction during the first week of March, Bitcoin appears to be consolidating and trading horizontally. The price action of Bitcoin hovers between the area of the $8400 and $9800 levels, with major resistance observed at the $10,000 mark.
Overall, market sentiment appears to be stagnant at the moment. Total market capitalization is staying between the $380 billion and $360 billion in the past few days. Since March 9, Bitcoin price action and global market capitalization have not recorded any major moves.
On the 1-Day Logarithmic Scale of Bitcoin price action from March 2017 until today, we can see that there is a major support line that is on an upward trend. Also plotted on the graph is the descending trend line that represents the market corrections that started on December 2017. On the bigger picture, Bitcoin still appears to be bullish.
Looking at the trend lines, however, we can see that the longer bottom line is a strong support level, while the downward sloping line represents the bearish sentiments during the past few months. While the support levels are holding strong, Bitcoin is currently trading towards the crucial intercept point where the support line and the declining bearish trend line meet. If the current price action continues, we may see this crucial point on April 1, when Bitcoin will have to decide whether to move down along the bearish trend line, or break through resistance and restart the bullish momentum.
Price predictions at the moment are much more difficult to make. With Bitcoin trading sideways towards the intercept point of the bearish line and the major support line, only time will tell what Bitcoin’s next price action will be. For now, make sure that you closely watch the price graphs and consider all indicators before making trading decisions.
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