Bitcoin is working on a recovery from its catastrophic fall to $3,700 last week. The recovery made it back up to $5,500 before dropping back to $5,400 on Tuesday, March 17. Its increase in value is related to a boost from a White House press conference. United States Department of Treasury Secretary Steven Mnuchin confirmed that the administration plans to add its support to a $1 trillion COVID-19 economic stimulus package.
The stimulus is to provide loans and tax relief to small businesses, industries and citizens hit hard by the pandemic. The halt of the worldwide economy is a huge factor impacting equities markets. The market has been waiting for a concrete message from government leaders about what they are going to do to slow the spread of the novel coronavirus.
Bitcoin is trading between $5,050 and $5,400 as of late March 17 into early March 18. There is resistance at the $5,500 level. There could be a consolidation around the $5,200 to $5,600 of the highs and lows. This puts traders in a better market place for a $6,000 value.
The price of Bitcoin is trying to go past the high volume spot. There is even more resistance around $6,400 based on statistical analysis of the volume profile visible range. It seems like there could be a rejection around $6,000 to $6,300. The candlesticks also suggest a stabilization for the four-hour trading window at a value of around $5,600.
This leaves investors wondering what is next. Many believe Bitcoin is oversold. The RSI has gone up from 15 to 30 over the past few days. If it keeps doing that, it could get back to $7,200. However, if there is a big rejection around the $5,600 to $6,000 price range, the price could drop to $4,800. There is a lot of support for that value. There is also quite a bit of support at the $4,400 value. If Bitcoin fails to close at $5,200 on March 18, it has a good chance of going back to the $4,400 to $4,800 range for at least a couple of trading days.