Bitcoin price analysis: Can the recovery continue?
16:22, 23 March 2020
Bitcoin staged a remarkable comeback last week after the pioneer cryptocurrency had lost a substantial amount of its market capitalisation during the March 12 flash crash.
Bitcoin price analysis shows that the cryptocurrency could test towards the $8,000 level if bulls can perform a series of daily price closes above the $6,430 level.
Bitcoin medium-term price trend
Bitcoin caught crypto bears off-guard last week, as the cryptocurrency rallied towards its yearly opening price, around the $7,000 level, and broke its recent positive correlation with US equity markets.
The trading week ahead could be pivotal for Bitcoin, especially if bulls can start to gain traction above the $7,000 resistance level.
Bitcoin technical analysis shows that the cryptocurrency needs to breach the $8,400 level in order to reclaim its key 200-day moving average.
Daily price closes above the former 2020 trading high, around the $6,430 level, should encourage technical buyers.
Dip-buyers may be braced to enter around either the $5,955 or $5,500 levels this week if a price retracement occurs.
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Bitcoin short-term price trend
Bitcoin technical analysis shows that short-term bulls have the upper hand while price trades above the psychological $6,000 level.
A large ascending triangle pattern is currently playing out across the lower time frames, following last week's breach of the $6,000 level.
The implied bullish target of the ascending triangle pattern is around $2,400, which would take the BTC/USD pair towards the $8,400 level.
If sellers move price below the $4,900 level then a bearish breakout will occur. If this scenario occurs it is possible that Bitcoin could retest the $4,400 to $3,800 technical area.
Overall, Bitcoin bulls need to keep the price above the $6,000 level to encourage the short-term bid-tone that recently returned to the BTC/USD pair.
Bitcoin technical summary
Bitcoin technical analysis indicates that the cryptocurrency needs to hold above the $6,000 to $6,400 technical area to encourage the next major push higher towards the $8,400 level.
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