Important Support and Resistance Levels to Watch on Bitcoin

BINANCE:BTCUSDT   Bitcoin / Tether
Hello everyone! Thanks for taking the time to read my analysis. What a crazy time it has been for bitcoin             over the past few days. Just as soon as I gave up on my double top reversal formation this morning, the prices plummeted to bring us well below the 9.3k neckline support once again. Last night I noticed a huge hidden bearish divergence on the RSI which pushed even higher this morning. This is a significant divergence that signals for bear trend continuation, and I don't see this changing until we get some solid confirmation of a reversal.

On to the analysis…

Because the price of bitcoin             has been bouncing off the trendlines so perfectly, I felt it was necessary to make note of this.
There are 2 main resistance lines that are both very important for potential price reversal:

1.) The minor resistance line is the purple line formed from 17k down to 11.7k and while this line was clearly pierced between March 1st-March 7th it has remained a viable resistance line as we recently witnessed the price touch 9.8k before falling to where we are now. This is the trendline we will focus on first if BTC             makes a rally up overnight.

2.) The Major resistance line is the red line formed from the ATH             of 19.6k down to 17k. This trendline forms a strong resistance as BTC             touched it recently (at 11.7k) before falling down hard.
If we can cut through the purple resistance line, this red line is our next target.

As for support, I also have 2 main trend lines:

1.) The minor support line is the black line formed from 3.4k (Sept. 15th) to 7k (Feb. 6th). You probably noticed that this black line appears to cut right through the candles on Feb 5/6 but on the daily chart this is actually right at the bottom of the candle body (with Heikin Ashi candles).
It doesn’t seem to be too much of a coincidence that we saw the price of BTC             touch this line 3 times recently on the 8th, 9th             , and 10th of March AFTER the line was drawn.
So this is the area I will be keeping a close eye on for bitcoin             to potentially stop and reverse back up, which I have both circled in yellow.

2.) Finally, we have the major support line which is the bright green line from 2.8k (lowest point on Sept. 15th) to 6k (lowest point on Feb. 6th). We have yet to see Bitcoin             touch this support line since the low in February and this could serve as a great reversal point. This point at 7.3k also happens to fall right on the .236 fibonacci retracement level. I expect bitcoin             to bounce off this price by the end of the week.

After this, it is possible we continue further down and form a double bottom with the Feb 6th low, but for now I will watch these local levels before the next assessment.
Comment: Quick update:
Bitcoin has broken the local support trend line (in black) and is now in the process of dropping below the .382 fibonacci retracement. If bitcoin holds under the .382 fib, the next target is at the .236 fib level or the major support trend line (in green), whichever comes first. I still believe we will reach these levels right at the point of convergence as you can see in the chart above and possibly see a bounce back up. However, it is unlikely the bounce will bring us to the major resistance line (in red), but more likely we bounce off the purple resistance line. For now, let's just keep an eye on our targets and trade only on strong reversal signals.
Comment: Hi everyone, wanted to give this another update. It looks like Bitcoin bounced perfectly off the .236 fib level and green support trend line. I circled this area yellow for a reason! I like the volume we saw on this bounce, things look pretty good for bitcoin but we have many more obstacles ahead of us.
Our first obstacle coming up is the black support line which has been formed on the bottom of the candle bodies using the daily time frame. This support line also happens to be intersected by the .50 fib level. I expect Bitcoin to hit this area around 8.8k and then dip back down to the .382 fib area.
We are approaching the very end of this wedge where the support and resistance converge. So keep a very close eye on the price over the next 5 days because this could go either way from here.
Comment: BTC briefly pierced the black resistance line which will now act as support. The price right now is just hugging this line, so again we need to monitor this closely because a break back down below the line can easily happen. This is why I like to wait until 2 or 3 of these 4-hour candles closes well above the line for confirmation.
If it is able to close above the black trend line, we still have the purple resistance line right above it which has been very difficult for Bitcoin to pierce since December.
The RSI is also quickly approaching overbought condition, so we should expect to see a dip soon.

Stay tuned folks
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