The price of bitcoin is stuck at 2018 downside resistance

At the beginning of the weekend, Bitcoin (BTC) is having trouble crossing a key resistance zone and leaving a bias zone.

A few days ago, on March 20th, it seemed that Bitcoin could widen after a week – long consolidation in what looked like a flag or bear pennant, in a range of 3,940 to USD 4,000 against USD (not USD).

But the split was rather like a slow progression, on a volume of transactions unimpressive. In addition, Bitcoin was put on a collision course with an extremely robust resistance zone to the downtrend – with no less than a full year of deflection of the main crypto.

Faced with this obstacle, BTC failed to keep the meager gains above 4,200 key points, plummeting in the previous support and down to the next support, in the middle of $ 3,800. But this landfill was quickly bought, leaving BTC to be exactly in the same consolidation zone as last week.

The new side beach comes up against the downtrend, unable for now to push or break – already pushed once in the morning of March 23 (UTC) (see below).

(source: TradingView.com)

If Bitcoin continues to be rebuffed to this downward trend, it could continue to be inserted into the support of the local uptrend (the green field) and explode. The recent upward trend has been fueled by the power of powerful purchases every time BTC has dumped in recent weeks, as shown in the blue circles below.

(source: TradingView.com)

The magnitude of this downward trend can not be taken lightly, because it can be traced back to March, or even January 2018. If we do not break it now, it will only need a new confrontation with this trend, in a month. or so, as the current ascending triangle model of Bitcoin – a bullish model – is tested. As mentioned in yesterday's badysis, this seemingly ascending triangle could just as easily turn into a giant bear flag and drop to new lows for a final (hopefully) BTC surrender.

(source: TradingView.com)

(The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice, always do your own research)