Bitcoin Price Unable to Break Downtrend, Falls to Previous Support

Bitcoin (BTC) has for the third time failed to make inroads into a key downtrend resistance zone, and is now stair-stepping down support/resistance (S/R) zones one by one.

BTC’s rejection, however, was bought up at the nexus of two lower supports, one being the next S/R zone around $3,850, and the uptrend support (green field).

This means the crypto is entering a final squeeze (shown below in blue) in the very short term: It will have to either enter the resistance zone, or break back down to one of several support levels lower.

bitcoin price analysis 26 march(source: TradingView.com)

This key downtrend, illustrated below, harkens all the way back from early 2018, and rebuffed Bitcoin’s attempts to break out of the bear market several times - stopping the crypto cold each time (on the linear chart).

Thus, breaking into this zone here would be an important milestone in the crypto’s progress out of 2018(-19?) bear market.

bitcoin price analysis 26 march(source: TradingView.com)

On the whole, a break below the local uptrend shown on the first chart would not be disastrous. Bitcoin, and the entire cryptoasset market, have had by all accounts a fantastic couple of months, respecting a local uptrend begun in early February - with most dips quickly bought up like clockwork (blue circles, below).

Falling below this local resistance, there would be several S/R zones ready to catch the crypto’s fall (purple rectangles, below). Respect of any of these zones could take Bitcoin sideways for another attempt at the downtrend resistance.

Ultimately, Bitcoin can maintain its regional uptrend if it merely stays above the $3,500’s. Another squeeze zone between regional uptrend support and downtrend resistance awaits in April.

bitcoin price analysis 26 march(source: TradingView.com)

On the very long term, it is likely that Bitcoin has formed an ascending triangle. If this is the case, the bottom put in on about 13 December would form Bitcoin’s lowest price for the entire 2018-19 market cycle. Only a maintenance of at least $3,500 would uphold the ascending triangle pattern - and only a break of this level would be cause for major concern for 2019. If Bitcoin stays in the triangle long enough, it should eventually break to the upside, as the pattern is bullish.

bitcoin price analysis 26 march(source: TradingView.com)

(The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.)

Former Goldman Sachs Exec Shifts Portfolio to Bitcoin Ahead of Coming Economic Crisis

Michael LaVere
  • Former Goldman Sachs sales lead Raoul Pal predicts a "generational" economic crisis ahead.
  • Pal is shifting his portfolio to 25% bitcoin and 25% gold to prepare for the next 12 months. 

Raoul Pal, a former Europe hedge fund sales lead at Goldman Sachs, is preparing for a generational economic crisis by shifting more of his portfolio into bitcoin and gold. 

Pal said in a recent interview with Real Vision Group’s Howard Lindzon the global financial system is heading towards an economic catastrophe as a result of the coronavirus.  Pal predicted a 20% plunge in equities in the short-term and expects many businesses to fail in multiple sectors of the economy. 

He said, 

I think the balance of probabilities are that this is a much longer event in terms of the economic impacts… And I think it’s going to be the largest insolvency event in all history.

Pal called the coming recession a “generational change” and said it would have a lasting impact upon the psyche of younger generations, 

They will look upon, with some suspicion, the pension system which is going to fail in this. They’re going to look across securities markets in ways that they will think ‘this is just not for me.’ They will have different opinions on risk and savings than previous generations.

Pal argued millennials were scarred by the global recession in 2008, leading them to mistrust the financial system and seek novel alternatives.  He also revealed his portfolio allocation in light of the looming economic collapse, 

My allocation that I want to be in for the next 12 months probably, maybe longer, is 25% Bitcoin, 25% gold, 25% cash, and 25% trading opportunity.

Pal’s remarks preceded JPMorgan CEO Jamie Dimon’s address to shareholders on April 6, warning that “at a minimum” the market is heading towards a recession similar to 2008.

Featured Image Credit: Photo via Pixabay.com