Bitcoin (BTC) is expected to undergo a correction phase after a prolonged period of growth, possibly lasting through the entirety of March and even beyond. Technical analysis of the weekly BTC chart paints an encouraging picture for several reasons.
Firstly, Bitcoin has broken out of a long-term downward resistance line that had been in place since its all-time high.
Secondly, the price has bounced back above the $19,000 horizontal support level, which it had dipped below in June of 2022. Thirdly, the weekly RSI has broken above its descending resistance line and has risen above the 50 mark.
Additionally, two weeks ago, BTC formed a bullish engulfing candle (represented by a green icon). All of these factors point to the possibility of further growth for Bitcoin, potentially up to the $30,700 resistance area.
However, if the current trend loses momentum, there is a chance that the price could drop back down to the $19,000 support area. Nevertheless, as long as BTC remains above this level, the overall trend is still considered bullish.
Source: Trading View
Despite the optimistic outlook on the weekly time frame, the daily chart for Bitcoin presents a more pessimistic picture with several reasons to support it.
Firstly, there is the price deviation above the $24,000 resistance area, after which Bitcoin retraced and acknowledged this level as resistance.
Additionally, the wave analysis indicates that the price has finished forming a five-wave bullish structure (black).
If this holds true, then Bitcoin is either in an A-B-C structure (red) or a five-wave descending structure (black), which implies a decline to the 0.382-0.618 Fibonacci levels, resulting in a correction to $19,217-$21,582.
As the market took a long time to complete its uptrend, the price may experience a correction all through March and probably some part of April.
However, if this year’s high at $25,250 is absorbed, it will signal a further surge in growth. In such a scenario, Bitcoin could rise to new highs around $27,000
Disclaimer
Based on technical analysis, the outlook for Bitcoin (BTC) in March is leaning towards a correction towards the 0.382-0.618 Fibonacci levels, which translates to a correction range of $19,217-$21,582.
This decline is expected due to the completion of a five-wave bullish structure and a roll-back of the price above the $24,000 resistance level. If the bearish scenario plays out, the correction could continue through most of March, and potentially even into April.
However, if the price manages to absorb this year’s high at $25,250, it could signal further growth and a potential rise to highs around $27,000, thereby negating the bearish forecast.