Academy Trading Ideas Article

Bitcoin’s Bullish Triangle Successfully Forms, Traders Can Expect More Rebound if Price Breaks $6,800: Crypto Market Daily

2020.03.20

Cryptocurrency markets are seeing a major rebound today, March 20, with most top coins gaining over 20 percent on the day. 

Top cryptocurrency Bitcoin (BTC) was able to push through the $6,000 mark yesterday, March 19. The coin then broke into the $6,500-$6,800 are, where it is firmly located at press time, up almost 24 percent on the day. 

The second largest coin, Ether (ETH), is up 23 percent over the past 24 hours, pushing towards the $150 mark. 

Ripple’s XRP has seen slightly less growth on the day, up about 16 percent to trade at $0.172.

Bitcoin breaks through bullish triangle’s upper edge

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

After breaking through the bullish triangle, Bitcoin’s price has been supported by the triangle’s upper edge. As OKEx’s market analysis team predicted yesterday, this move can be a factor to judge the beginning of a rebound. When the breakout is accompanied by increased buying volumes, that can be another factor ensuring that the breakout is true.

As we see today, the trend just consolidated for a short period this morning, then the volume grew to a mid-level and the price directly broke $6,500. This means that market confidence is warming up and optimistic sentiment is reviving.

However, the area between $6,500 and $6,800 is still a hard resistance area as it used to be the bottom at the end of 2019. Breaking through $6,800 may make it possible to test $7,000, or investors should wait for the pullback and enter.

If the bullish push is strong, this pullback can be supported by $6,500, or will fall to $6,000 to find support.

As visible on Bitcoin’s 1-day moving chart above, the moving route is reaching a significant point. Just looking at the chart, we see that bulls and bears are hotly contesting near $6,800.

If the price can strongly break through $6,800 this weekend, it’s possible to return back to $7,000, as shown above in condition 1, and $4,000-$5,000 will be the bottom of the previous dumping stage. 

Otherwise, the rebound today may just be a trap for big whales to attract the bulls. After they got enough profit, another huge selling event could happen, as shown on the chart above in condition 2. Then the daily trend may form a double bottom and then rebound.

Daily buying volume is not enough to push higher currently, so investors should focus on the market changing at night. The risk of the price dropping will increase if the volume remains at this relatively normal level. MACD lines are nearly forming a golden cross, pump possibility is high. 

Resistance and support levels

  • Short-term resistance: $6,800       
  • Medium-term resistance: $7,050
  • Short-term support: $6,500
  • Medium-term support: $6,000

ETH sees even more bullish sentiment than BTC

1H ETH/USD Perpetual Swap data. Source: OKEx.com

Compared with BTC, the bullish strength of ETH is even stronger. After breaking the upper edge, the price directly touched $140 then came into a short consolidation, where the bottom was supported by $134. 

Several hours ago, the trend broke $145 once and is now being suppressed by $155 — as this position used to be a strong support in January, it will change into a hard resistance now.

Investors should notice several important positions over the weekend, in order to judge whether or not this pump can continue. The first support position is around $145: if the trend can rebound here, it means that bullish sentiment is stronger. 

The move will be weaker if the price is supported by the second position, which is around $134. Combined with the volume changing condition, it’s not difficult to judge the future.

Resistance and support levels

  • Short-term resistance: $125     
  • Medium-term resistance: $134
  • Short-term support: $120          
  • Medium-term support: $116

XRP sees weaker rebound, resistance is strong

1H XRP/USD Perpetual Swap data. Source: OKEx.com

The rebounding range of XRP is relatively weaker than the other altcoins, as the pullback after breaking the upper edge almost fell below it again. Due to the warming of general market emotion, the price stabilized and rose to $0.1750. It will be hard to break this strong resistance in the short term.

Investors should notice that if the trend falls below $0.1650 in the pullback, it means that the rebound may not have enough energy to pump more. However, so long as the upper edge of the triangle can still be effective, the price does have a small possibility to dump further.

Resistance and support levels

  • Short-term resistance: $0.1750
  • Medium-term resistance: $0.1980
  • Short-term support: $0.1650    
  • Medium-term support: $0.1600


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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