Bitcoin Technical Analysis Evening March 7th

Bitcoin is showing short-term bullish signals, while the long-term outlook remains bullish.

important price range

Bitcoin broke out of a descending wedge with a large bullish bar in November. The move also helped BTC break the long-term bearish structure as it breached the $21,500 resistance area and hit the next resistance at $25,000.

After the correction, Bitcoin managed to flip the $21,500 area as support and created a bullish engulfing pattern during the week of February 13-20. However, the momentum still failed to help the bulls break out, breaching the $25k area and causing the price to drop again to the $21.5k area.

Although the price has been falling for the past 2 weeks, it failed to erase the gains from the previous bullish engulfing candle. Therefore, the trend remains bullish.

The RSI is above 50, favoring a bounce off this support zone. If so, the price could retest the $25,000 area again.


BTC/USDT Weekly Chart | Source: TradingView

short term recovery

Bitcoin appears to be trading within an ascending parallel channel after a strong rally since the start of the year. Recently, the price fell below the middle line of the channel and approached the support line of the channel.

This line has helped the price bounce twice before, so it is likely to bounce again. Price action and RSI support this outlook as it produced a false breakout and notable bullish divergence below the channel support line (blue arrow).

Therefore, Bitcoin may recover in the coming days. The first target on the upside is the channel midline at $23.8k.

This bullish view will be invalidated when the price breaks below the channel. If so, BTC could drop to $21,500 and then to $20,500.


BTC/USDT 4-hour chart | Source: TradingView

get conclusion

Bitcoin is showing signs of short-term recovery with the first target at $23,800.

The long-term outlook remains bullish as the 21.5k area remains intact.

You can see the token price here.

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According to Beincrypto

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