08.03.202111:28 Forex Analysis & Reviews: Bitcoin Analysis and Forecast for March 8, 2021

I think it is no news to anyone that in recent years, digital assets, namely cryptocurrencies, are gaining more and more popularity and are actively used as trading instruments. In today's article, we will consider one of the most popular cryptocurrencies - Bitcoin. In order for the technical picture to have a more complete outline, we will start considering this interesting trading instrument with a weekly time frame, but before that, a little bit about the trading of the last winter month. So, in February, the cryptocurrency market in general and Bitcoin, in particular, showed very strong growth, and the total capitalization of the digital currency market was more than $1.175 trillion. The amount, of course, is huge!

Weekly

As can be clearly seen on the weekly chart of Bitcoin, after a fairly long consolidation, which is highlighted in this time frame, an impressive growth of the asset followed. It is characteristic that the consolidation (if it is considered as such) lasted for about a year, after which at the end of last year, Bitcoin began to grow rapidly. After such a shot, it stretched the Fibonacci grid from 3,940.36 to 58,258.16. Usually, after such impressive and very strong price movements, an adjustment is inevitable, which is most often limited to the first pullback level of 23.6 Fibo. In fact, this is exactly what happened with the corrective rollback of Bitcoin. Yes, the exchange rate briefly fell slightly below the level of 23.6, but last week it rose again and returned above this level of the Fibonacci instrument. What's next? The question is certainly interesting.

I assume several options for the further price movement of the most popular cryptocurrency. Considering that the correction has already taken place, the first option is to continue the rise from the current values. The second option for further Bitcoin price movement may be a longer consolidation, which will take place in the price zone between the 23.6 Fibo level and the maximum values of February trading at 58,258.16. In this scenario, the next upward impulse is likely, and it is not excluded that it will also be quite impressive. And finally, the third option for trading in Bitcoin will be its decline to more distant corrective levels of 38.2 Fibo and 50.0 Fibo from the indicated growth. Another characteristic technical point is the factor of a rather impressive upward reversal following the price of the Tenkan line (red line) and the Kijun line (blue line) of the Ichimoku indicator. Against their background, the upward reversal of 50 simple and 200 exponential moving averages looks less convincing, however, these movings are actively dismantling signs of an upward reversal, especially the blue 50 MA. These factors with a high degree of probability indicate the continuation of the bullish trend in Bitcoin, which we may observe soon, but for now, let's see what picture is observed in a younger time frame.

Daily

Looking at the daily time frame, one can already make an assumption that Bitcoin has moved to consolidation in the 43,117.65-52,506.65 price area. At the same time, despite the current decline, the price is closer to the upper border of this range, which increases the likelihood of its breakout and subsequent movement in the upward direction. Today is the third day, when the quotes (at the time of writing this article) are trading between the Kijun and Tenkan lines, which offer resistance and support, respectively. It is possible that a true breakdown of one of these lines will determine the subsequent price direction. In my subjective opinion, there are more chances for the upward trend to continue, therefore, I consider my main trading recommendation to purchases that are better to open after short-term declines and at more favorable prices.

Technically, it looks very good to open long positions after a decline to the lower limit of the indicated daily range. As can be clearly seen on the chart, 50 MA has settled right on the brown support line, which will certainly strengthen the mark of 43,117.65 and will try not to let the price gain a foothold below. Earlier and aggressive purchases can be tried near the Tenkan line (red line), as well as on the approach to the minimum trading values on March 5. If today's candlestick keeps its own. A bearish reversal pattern (or patterns) of candlestick analysis will appear on the current form or below the resistance level of 52,506.65, you can try to open sell trades. And yet, the main trading idea at the moment seems to be purchases.

Good luck!