BTC Daily Outlook Report- 25th March, 2022
1D chart outlook
The daily chart is clear enough that really does not need much explanation. Just few pointers for clarity and moves we can see.
- Price is stuck at $44,000–$46,000 resistance level, which has now become one of the toughest resistance blocks for BTC to break.
- On-Chain balance volume is also at resistance here. A firm breakout on price with strong volume and bullish divergence would give us that monumental push towards the $51,000-$53,500 level, this could happen after the weekend close or may take a few weeks to play out.
- Failure to break above $45,600 before the weekly candle close does not break the bullish structure formed until now, but it could be a signal that a price pullback is on the horizon. This pullback will also set a new higher low in this structure, which again would signal a bullish momentum in place.
The Fibonacci levels plotted through my earlier Bitcoin reports are also playing well and price has been beautifully respecting those levels. This is something we refer to as Clean Price Action.
4H chart outlook
On the 4H price chart, we saw Bitcoin price broke above the Pink trendline and is now comfortably consolidating above the 0.236 Fibonacci level and also above the 20 & 50 MA. This is very strong bullish structure in formation IMO.
Currently Bitcoin is trying to reach the Upper area of supply zone, which lies at the $46,000-$48,000 level. This is where either sellers step-in and book profit for their short-term positions from $37,000 level or we might see a long liquidation event, since price has been moving straight up for quite a while now.
Expecting a retest of mid $42,000 level if rejected.
1H Chart outlook
Moving into the low-time frame 1H chart, price action has been very easy to read. In the chart below we can see how price went above from one Fibonacci level to the other, price is being supported by the 20 & 50 MA. We are witnessing a very clean upward moving Price-Action after a very long period of choppy market momentum.
If we do get a pullback from current level, we will be looking for support at $43,400 (pink sloping trendline), $42,378 (0.382 Fib) and the 0.5–0.618 Fibonacci level.
After a huge uptrend, price now moving sideways indicates a slowdown and maybe we can see a local top before the weekly close. Right now any sort of consolidation would be seen as a bullish consolidation and will help in price building up momentum for a further move upside.
You can always refer to the Fibonacci levels traced on the charts to take your call and gauge price action for any trade opportunities that might present itself.
The above material should only be taken as educational information and not as financial advice.
A huge shoutout to #CoinDCX (one of the most secured Indian crypto exchanges) for giving me this opportunity to write such a detailed report and be a part of the #CoinDCXpathbreaker program, enabling me to share such knowledge with everyone in the crypto space.