Academy Trading Ideas Article

Bitcoin Could Test Previous Low, Strength of $6K Resistance Is Crucial: Crypto Market Daily


After a brutal fall in crypto and traditional markets at the end of last week, Bitcoin (BTC) and other top cryptocurrencies were able to consolidate over the weekend. 

However, early this morning, March 16, crypto markets took another hit, seeing double digit losses over the past 24 hours. 

Bitcoin is currently trading around $4,600 and is down over 14 percent on the day and over 40 percent on the week. 

Ether (ETH) is also down about 15 percent over the past 24 hours, holding up just above $100 per coin. The second largest cryptocurrency has lost almost 50 percent of its value of the past week.

BTC/USD Perpetual Swap

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

BTC entered a consolidation over the weekend around $5,500 after experiencing a sharp decline last week, and trading behavior showed extreme inactivity. However, within two hours tonight, March 15-16, the price suddenly rose to $6,000 and then fell back to around $ 5,300.

During last night and this morning, Bitcoin traded sideways around the $5,300 mark, before dropping to near $4,600 by press time.

Looking at the 1-hour chart, $6,000 has been proved to be a short-term effective resistance level, and the short-term breakout probability is low. If the price tests the previous low — near $3,800 — and is supported, it may form a double bottom.  Otherwise, the price may look for new support at $3,500.

In view of the recent frequent oscillation washing activities, which are prone to small-scale extreme market conditions, the current risk of entry for retail investors is relatively high. Whether or not the current region can become a staged bottom remains to be confirmed.

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

OKEx analysts believe that although the current trend is in a rest period after being in an oversold area, the entire crypto-market is still filled with pessimism. As a representative coin, BTC has shown fatigue and a tentative breakout has been difficult to manage given low trading volume funds. 

During the big dump last Friday, March 13, the 1-day candlestick closed with a long lower shadow, showing the bulls’ strength of undertaking. This lower shadow may indicate a small possibility that a new low can be created. However, another long upper shadow for today indicates a hard resistance below $6,000. 

Energy columns of MACD are moving gently, but a golden cross won’t be formed in the short-term before the two lines have a meeting signal. Therefore, the trend will enter a consolidation is possible in the future, $3,800 and $6,000 should be noticed during this period.

Resistance and support levels

  • Short-term Resistance: $6,000       
  • Medium-term Resistance: $6,680
  • Short-term Support: $4,590
  • Medium-term Support:$3,800

ETH/USD Perpetual Swap

1H ETH/USD Perpetual Swap data. Source:

ETH is more vulnerable than BTC. The price failed to break through the previous high of $145 this morning. It shortly tested $134 and then continued to fall, dropping below the low of $114 for the first time after entering its recent consolidation trend over the past few days. 

The 1-hour chart shows us that the bearish strength of the callback over past few hours is absolutely stronger than the first one. Selling volumes also have an increasing signal, showing weakness. 

Investors should focus on the support effectiveness of $106 firstly. If the price of Ether breaks below it, then it is possible to find support near $94.

To the bulls, it’s hard to predict a longer rebound unless the resistance level around $145 can be broken. 

Resistance and support levels

  • Short-term Resistance: $134      
  • Medium-term Resistance: $145
  • Short-term Support: $94          
  • Medium-term Support: $86

XRP/USD Perpetual Swap

1H XRP/USD Perpetual Swap data. Source:

The 1-hour chart above shows that Ripple’s XRP is moving into another consolidation period after last week’s dump. As it already created a new low on Friday, March 13, it’s not easy to expect a support level and strength. The most meaningful position is around $0.1355 and the previous low at $0.1028. 

OKEx analysts predict that XRP’s price may experience another dump. If the range of the next dump is smaller than previous dumps and the highest selling volume remains lower than previous peak levels, a bullish reversal signal will appear.

Investors should also keep in mind that $0.1700 is the first resistance level if a rebound can last longer. But the pattern will be a false breaking if the price breaks without increasing buying volumes, then the trend will move back to the consolidation area. 

Resistance and support levels

  • Short-term Resistance: $0.1700
  • Medium-term Resistance: $0.1985
  • Short-term Support: $0.1355    
  • Medium-term Support: $0.1028

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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