Academy Trading Ideas Article

Bitcoin Bulls Are Not Dead, Bearish Trend Only Expected After Price Breaks Below Bullish Trendline: Crypto Market Daily


Friday, March 27: Most of the top cryptocurrency markets are continuing to see little volatility over the past 24 hours, just slightly in the green on the day. 

After making another attempt to breakout towards $7,000, Bitcoin (BTC) is currently trading around $6,700, up a fraction of a percent on the day to press time. 

Ether (ETH) followed a similar pattern, pushing towards $140 earlier this morning, before falling back to $136, up about half a percent over the past 24 hours. 

In contrast to other top markets, Ripple’s XRP has grown almost 7 percent on the day. The third largest coin made a more successful breakout, holding this morning’s gains around the $0.17 resistance area. 

BTC moving to crucial position

1H chart BTC/USD Perpetual Swap data. Souce:

This morning, BTC attempted to break above $7,000 yet again, but the price was hindered and fell after rising to $6,900. It continues to fluctuate above $6,500 at press time. 

OKEx’s market analysis team believes that the market is moving to a crucial position as the trend is approaching the end of the triangle area. It’s a signal that the strength of the bulls and bears are relatively balanced. Due to undeveloped trading activity recently, it’s not easy to predict the direction that the price will move in. 

$6,400 will be a significant position that may affect the future trend. If it can be an effective support over the weekend, the bulls can still have a chance to pull the price back to $7,000. Otherwise, if the price dumps below $6,400, that means that the bullish trendline is invalid. Make sure the rebound can be suppressed by the trendline or $6,400 after breaking, then investors can be sure the bearish trend has been formed.

Bitcoin’s 1-day chart above is showing that although the trend in the early part of this week was steadily rebounding, as the price approaches the hard resistance area of $6,900-$7,000, the bulls are gradually becoming exhausted. That’s why we’re seeing the bulls repeatedly rush higher but quickly fall back — a stagnation pattern is obvious. 

Rather than being smashed by the bears, the price showed strong support at $6,500. As far as the current trend is concerned, although the support below is strong, the confidence of the bulls will gradually weaken with the repeated failed attempts, and the downside risk will gradually increase. 

However, investors should note that the bullish trend line at the hour level has not been broken. But we need to be cautious and predict bearish, as $6,400 may become the reference price to break below the trend line.

Resistance and support levels

  • Short-term resistance: $6,900       
  • Medium-term resistance: $7,000
  • Short-term support: $6,400
  • Medium-term support: $6,000

ETH may touch support at $110-$120

4H ETH/USD Perpetual Swap data. Source:

ETH continues to be suppressed by the resistance range of $140 to $145. If the bullish trend line is broken soon (near $134) and there is no rebound in a few hours or the rebound cannot break above $134, then the market can continue to be bearish until the $110- $120 area. 

Remember that if the price breaks the bullish trendline without heavy selling volumes, then the trend may rebound. If the rebound can’t come back to the triangle area, it means that the bears have the advantage and the it’s possibe to touch the support area between $110-$120 may be possible to be touched. This is also a signal that a second bottom is forming after dropping to $88 — investors can expect a big rebound if the bottom is successfully formed.

Route 1 on the chart above means that the bulls are a little bit stronger. In that case, the price may have a chance to test $145 and break it. However, if the price breaks through $155, we can expect a large-scale rebound.

Resistance and support levels

  • Short-term resistance: $145     
  • Medium-term resistance: $155
  • Short-term support: $134          
  • Medium-term support: $120

XRP breaks resistance, defying market trend

1H XRP/USD Perpetual Swap data. Source:

The XRP bulls began suddenly in the early hours of this morning, and moved once to break through the hard resistance of $0.1750, but fell back to around $0.1710 after touching $0.1840. 

This is not the first time that XRP has risen against the whole market trend. The bottom level from the end of 2019 has once again become a short-term resistance point that is difficult to break through. 

If price can’t hold out above $0.1750, it may prove that the previous rebound bullet has been exhausted. Otherwise, there is still a chance to continue testing the resistance of $ 0.1840.

Resistance and support levels

  • Short-term resistance: $0.1750
  • Medium-term resistance: $0.1820
  • Short-term support: $0.1710    
  • Medium-term support: $0.1650

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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