Academy Trading Ideas Article

If Bitcoin Can stabilize at $6.4K It May Test Last Week’s High of $7K: Crypto Market Daily

2020.03.24

Tuesday, March 24: crypto markets are seeing solid gains over the past 24-hours. The price of Bitcoin (BTC) has grown almost 16 percent on the day, steadily climbing upwards from $6,400 this morning. 

The second largest crypto by market cap, Ether (ETH), has gained about 14 percent and is trading over $140 at press time, pushing towards the short-term resistance level of $145. 

Ripple’s XRP is up a more mild 7 percent on the day, heading towards it’s medium-term resistance level of $0.1750.

Bull strength rising for BTC

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

Last night, BTC experienced an extreme trend again. After the price rose strongly to $6,700, it immediately fell back, and fell to around $6,100 in just several minutes. Since then, the price has been steadily rebounding above the $6,400 mark.

The OKEx market analysis team believes that the pinning pattern followed by a big bullish candlestick last night is a typical big whale move in order to entice bulls and blow up bear positions 

The bullish candlestick started near $5,800 and first broke some short positions, which set stop losses near $6,000. With the signs of heavy volume and rising prices, however, within the next hour, the price fell instantly from a high level, and the long positions that had just entered were washed out.

At present, the trend has stopped falling at $6,400, and the bottom of the 1-H level is constantly rising. This is a sign of the increasing strength of the bulls. 

If the price can maintain stability above $6,400 today, there is a probability of testing resistance at $7,000. Investors need to note that even if the trend breaks below this point, but does not break through $6,000, the trend is still bullish.

Bitcoin bulls need more volume to break $7K

Bitcoin’s 1-day chart above indicates that the bullish trend line has proved that it successfully supported the price yesterday, March 23. This also means that the effectiveness of the trend line is improving. Bears need more strength if they want to push the price below it.

Today, although the price pumped from $5,800 to $6,800, almost touching the previous high, buying volumes appear to show a reduced trend. If volumes can’t increase to a high level, it won’t be easy to break $7,000.

Investors should note that if the price drops below $6,000 — meaning it has fallen below the trend line — the formation of a second bottom will still be possible in the future.

Resistance and support levels

  • Short-term resistance: $7,000       
  • Medium-term resistance: $7,300
  • Short-term support: $6,400
  • Medium-term support: $6,000

ETH consolidates, pushing short-term resistance level

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

Yesterday, March 23, ETH was effectively supported by $120 and rebounded, but it was blocked several times near $138. If there is no increase in buying funds to support the trend, it may be difficult to break this resistance level.

For short-term strong support, investors can focus on $134 first. If this level is broken, ETH may continue to test support at $120.

Investors should be aware that $155 is the upper edge of the consolidation area. Before breaking out above this position, the trend must be treated as consolidating, meaning that an extreme market condition may still exist.

Resistance and support levels

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

XRP faces short-term resistance level, needs more active trading

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

As the chart above shows, the moving trend of XRP is becoming steady. The first support level can increase to $0.1440 and the first resistance level is around $0.1650. Currently, trading activity is low, making it difficult to break the resistance level. 

However, if the pullback after falling from $0.1650 can be supported at $0.1580, it’s also a stronger signal of bullish movement in the future. Falling below $0.1440 may mean that the event of absorbing counters needs more time.

Resistance and support levels

  • Short-term resistance: $0.1650
  • Medium-term resistance: $0.1750
  • Short-term support: $0.1580    
  • Medium-term support: $0.1440


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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