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The Bitcoin price dropped over 3% in the past 24 hours to trade at $64,172.27 at press time.
Surge in BTC Demand Among Argentines Amid Peso Decline Hits 20-Month High
Amid the continuous depreciation of their national currency, the Argentine peso (ARS), Argentines are striving to protect their savings, leading to a significant increase in Bitcoin demand. This surge has reached a peak not seen in the last 20 months, as highlighted by a recent report. Bloomberg, on March 20, cited data from the cryptocurrency exchange Lemon Cash, which showed that almost 35,000 Argentines bought Bitcoin in the week concluding on March 10. This figure is twice the average weekly purchase rate seen in 2023.
The Bitcoin Price Enters Temporary Consolidation
4-hour chart for BTC/USD (Source: TradingView)
The Bitcoin price has traded sideways for the past 24 hours between $62,300 and $64,878. A symmetrical triangle has also formed on the leading crypto’s charts, which suggests BTC may enter into a strong move soon. Should the Bitcoin price break out towards the upside, it may attempt to flip the $64,878 resistance into support. A 4-hour candle close above this threshold in the coming 12 hours could give the crypto king the foundation needed to rise to the subsequent resistance level at $68,372 in the following 24-48 hours.
On the other hand, a strong move down could put BTC at risk of testing the immediate support level at $62,300. Continued sell pressure at this point could then push the Bitcoin price down to as low as $60,400 in the short term.
Bitcoin Price Technicals on the Verge of Triggering Bullish Flags
Technical indicators on BTC’s 4-hour chart suggest the BTC price may rise in the coming 24 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are flagging bullish. These technical indicators are also on the verge of triggering major bullish technical flags.
The MACD line is rising towards the MACD Signal line. An intersection between these two technical indicators may signal that the Bitcoin price has entered into a positive cycle. In addition to this, the RSI is looking to cross above the Simple Moving Average (SMA) line. The prior breaking away above the latter could be seen as an indicator that buyers have gained the upper hand against sellers. As a result, it could be easier for bulls to push BTC higher in the coming 24 hours than it will be for sellers to pull it down during the same period.
Based on these market conditions and technical analysis for Bitcoin, a potential trading strategy could be structured around the breakout from the symmetrical triangle formation and the anticipated bullish signals from the MACD and RSI indicators. Here’s a trading strategy that incorporates these elements:
Watch for the Bitcoin Price Breakout:
Upside Breakout: Place a buy order if a 4-hour candle closes above the $64,878 resistance level. This would confirm the breakout to the upside and could indicate the beginning of a bullish trend. The rationale is that a close above this level would suggest strong buying interest and a potential shift in market sentiment.
Downside Breakout: Conversely, prepare to sell or short Bitcoin if you see a 4-hour candle closing below the immediate support level at $62,300. This action could signify a bearish trend, indicating that sellers are overpowering the buyers, potentially leading to further declines.
Set Profit Targets and Stop-Losses:
For Upside Movement: If the breakout is to the upside, set a primary profit target at the next resistance level of $68,372. To manage risk, place a stop-loss just below the breakout level at around $64,000, or at a level you’re comfortable with based on your risk tolerance.
For Downside Movement: If the market moves downwards, consider setting a profit target around the next support level at $60,400. A stop-loss order could be placed just above the $62,300 level to limit potential losses.
Monitor Technical Indicators:
Keep an eye on the MACD for a potential bullish crossover (when the MACD line crosses above the signal line). This could serve as a confirmation of bullish momentum.
Watch the RSI for a move above the Simple Moving Average (SMA) line. An RSI breaking above the SMA can further confirm the strength of the buying interest.
Risk Management:
Only invest what you can afford to lose. The cryptocurrency market is highly volatile and unpredictable.
Adjust your position sizes based on your risk tolerance and the size of your trading account.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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