Since February 26, Bitcoin is stuck between $8,400 and $8,800. The price movement has been insignificant because of consolidation. It is anticipated that in a couple of days, a price breakout or break down is imminent.
BTC/USD – 4 Hour Chart. Source: Trading View
On the 4-hour chart, the downward movement of price has been suspended as the coin fell to the low of $8,400 and resumed consolidation above the current support. Bitcoin has been consolidating for about a week because the market is respecting a historical price level in January. In January, the market consolidated for some days before falling to $8,250 low.
At that low, the price rebounded to reach a high of $9,500. The uptrend continued as it reached a high of $10,400 on February 13. The price action can repeat itself in March 2020. Nonetheless, the Relative Strength Index is rising as it reaches level 41, which indicates that the market is in the downtrend zone.
Bitcoin Has Fallen Into the Oversold Region as We Await the Emergence of Buyers
BTC/USD – Daily Chart Source: Trading View
On the daily chart, the market is characterized by small body candlesticks like Doji and Spinning tops after the appearance of a large bearish candlestick. These candlesticks appear when the market is consolidating.
Nevertheless, BTC has fallen into an oversold region of the market at the current market price level. The further downward movement is unlikely. Instead, we should expect the emergence of buyers to push Bitcoin upward. Presently, BTC is below 20% range of the daily stochastic. BTC/USD pair is in the oversold region of the market. The market will remain in the oversold territory if the bulls fail to arrive.
