Bitcoin Price (BTCUSD) Forms Bearish Flag at Trend Line and SMA

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Written By: Angeline Feliciano

Feb 28, 2020, 03:31 GMT 03:31

BTC

Summary:

Bitcoin price sold off aggressively this week but yesterday's price action suggests that it could soon rally. Are there enough buyers for bitcoin?

BTCUSD Finds Support at Trend Line and SMA

Bitcoin price has been sold off aggressively for the past week. BTCUSD caught a break yesterday when it closed higher than its opening price for the first time in four trading days. Yesterday’s candle even closed as a spinning top. On its own, this candle is considered as a neutral indicator. However, because it formed on a confluence of support, this suggests that buyers could be priming to push bitcoin price higher. The 200 SMA and rising trend line coincide nicely at 8,790.00 where the spinning top formed. A close above yesterday’s high at 8,972.92 could confirm this assumption. If it happens, we could see BTCUSD soon rally to its February 13 highs above 10,300.00.

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Is There More Room for Bitcoin Price to Trade Lower?

On the other hand, the 4-hour time frame presents a more bearish setup. Bitcoin price has recently consolidated following its drastic drop. Consequently, a bearish flag pattern formed. This chart pattern is a bearish continuation pattern and a drop below yesterday’s low at 8,520.00 could indicate that BTCUSD may still trade lower. Near-term support is at 8,273.00 where bitcoin price previously made lows on January 25 and the 100 SMA seems to fall.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.