- Bitcoin price may be forming a bearish structure against the US dollar in the near term.
- March outlook looks negative for the BTCUSD pair, as there is a contracting triangle pattern forming on the daily chart (data feed from Bitstamp) calling for a major break.
- The price is currently in the 5th wave and may complete near the triangle resistance area.
Bitcoin price is eyeing for a break in March 2016. Let us see how it may trade during the remaining part of the week.
Bitcoin Price – Break Down?
Bitcoin price is trading in a range for the past couple of weeks, but if we look at the weekly chart, then we will know that BTCUSD is actually forming a breakout structure. There is a contracting triangle pattern forming on the daily chart (data feed from Bitstamp), which can be seen as a major pattern for the next move in Bitcoin price against the US dollar.
If we look at the wave count, then the price is in the 5th wave at the moment, which can very well complete near the triangle resistance area. A break below the triangle support area could easily push the price towards the 61.8% Fib retracement level of the last leg from the $300 low to $460 high.
The price is currently flirting near the 100-day simple moving average, and a successfully close below it may increase the bearish pressure on BTC/USD. Let us wait for a break during the coming days and then figure out which way to enter a trade. The chances of it breaking down is more compared with a break higher.
Looking at the technical indicators:
Daily MACD – The daily MACD is almost flat, calling for a break moving ahead.
RSI (Relative Strength Index) – The RSI is below the 50 levels, which is a negative sign for the bulls.
Intraday Support Level – $400
Intraday Resistance Level – $425
Charts from Bitstamp; hosted by Trading View