Categories: Analysis

Technical Analysis of Bitcoin March 3rd

Bitcoin (BTC) made another unsuccessful attempt to break above $44,400 on March 2nd. There is a lot of support below the current price, suggesting that another breakout attempt may be on the horizon.

Important resistance zone

Bitcoin has been moving up along with the ascending support line since Jan 24th. On February 27th, it bounced back from this line and created a large bullish candle the next day. This led to a local high of $45,400 on March 2nd.

However, BTC failed to break the $44,400 horizontal resistance area and was rejected by it for the fourth time (red icons). As resistance levels are weakening each time they are touched, a break above this resistance seems the most likely scenario.

If there is a breakout, the next resistance will be found at $51,100.

BTC/USDT daily chart | Source: TradingView

Exploding BTC

The six-hour chart shows BTC breaking the descending resistance line before touching the aforementioned high. However, it has yet to break the February high of $45,821.

If there is a short-term retracement, the next support will be found at $41,200. This support was created by:

  • Long-term 0.382 Fib retracement support (white)
  • 0.5 Fib retracement short-term support (black)
  • The previous descending resistance line

BTC/USDT 6 hour chart | Source: TradingView

count waves

The most likely wave count suggests that BTC started a five-wave bullish pulse on Feb. 24. If true, it is currently in wave four of this structure.

The most likely level for the end of the fourth wave is between $42,500 and $43,000 (white circle).

This area culminates in the center line of the channel connecting waves one and two (black) and the support line of the channel connecting waves two and three (white).

After that, a rally towards the conclusion of the fifth wave would be expected.

BTC/USDT 2 hour chart | Source: TradingView

You can see the BTC price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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