Trading around $3,800, Bitcoin was unusually stable last week. However, due to the fact the coin has been quite volatile lately, a major movement was expected in the days to come.
The direction of the anticipated move was unknown until the early morning hours of Monday.
After a weeklong of consolidation, Bitcoin made its drop of $120.
As a result, Bitcoin broke down to major support area that showed to hold the coin, ultimately preventing a further drop.
The momentum was seemingly in favor of the bears last weekend, which only justified the Monday drop.
This, yet again, raises a set of questions whether Bitcoin is going back to being bearish or not.
With a share of 52.4 percent, Bitcoin is still dominant and ranked on the first place on the overall market. The total market cap reached $127 billion this week.
Bitcoin Price: Weekly Chart
Same as last week’s reports, this week Bitcoin once again proved the bull’s work was successful at guarding the resistance and staying within the trading range of $3,200 and $4,100.
It seems like the coin is “locked” inside this range, as this pattern has been continually identified for 15 weeks now.
In the weekly chart of Bitcoin, the price showed to fluctuate in the attempts of making higher highs.
For the bulls, there were rather positive signs. The MACD, although still below zero, was cut across its signal line and is currently trending upwards.
Prior to the price fall on Monday, Bitcoin reached a high of $3,901 on March 1.
The weekend, as expected, was relatively stable until Monday, March 4, when Bitcoin’s price got back into a lower range.
Such descend made the weekly bottom point where the coin could be found at an exact price of $3,733.
Shortly after the downward line was spotted, Bitcoin bulls managed to surpass the drop successfully, making a weekly high of $3,907 on March 6.
In short, the weekly chart once again displayed regular highs as well as lows, and we expect the Bitcoin bulls to want to trade within this range for the days to come.
Bitcoin Price: Daily Chart
As a closer report, the daily chart presents a fairly mixed picture.
The chart itself showed the support levels lied below for Bitcoin, as a cluster of support was spotted.
The DMA stands at a retracement level of 61.8 percent, with the resting of 78.6 percent.
According to the daily activity, the Stochastic RSI Oscillator of Bitcoin had not been detected to cross over yet.
However, the coin still showed to be in the area of overselling. Holding up the area where the relative strength index is reaching support could be essential for the price of Bitcoin.
With the support of the declining trend line, Bitcoin has the chance of keeping its price above $3,700.
There still are risks of a further downturn, and if the bears are unsuccessful at breaking $3,000, Bitcoin does not intend to move higher.
Because the switch is expected to happen in March, the micro timeframes put a huge accent on this month as being pivotal for Bitcoin.
Bitcoin Price: 4-Hour Chart
As we already know, due to the consolidation, the bear flag was formed. The flag, shown on the 4-hour chart, was broken around the $3,800 range.
This was the exact trigger behind the following bearish move on Monday morning.
Following the breakdown, Bitcoin bulls managed to find significant support and exceed this week’s lowest point.
The general conclusion is that Bitcoin did not have a terrible week behind. However, we cannot deny the bears definitely took control this time.
If desiring to unlock itself from the already-familiar range, Bitcoin bulls will have to work hard not to bring the coin into a dangerous and fragile spot once again.