Just two days ago we saw BTC taking a sharp dive towards the $3921 support, yet the level held and the price action reversed. The wick on the 4-hour candle (printed on 21st March) shows the presence of bulls willing to buy the dip and it exactly happened on the $3921 level.
Why the $3921 level Matters:
• $3921 is of strong support. Acc. To the 4h price action of BTC
• Drawing Fibonacci from the recent Swing high of $4185 to Swing Low of $3656, we get the 0.5 Fibonacci level at $3921, which also supports our 1st key point.
• Exponential Moving Average 100 is around the $3921 level
• Any drop again to $3921, will trigger a double bottom pattern in the smaller timeframe which is bullish.
BTC is trending in an upward moving channel, from which the current 4h candle is touching and bouncing on the lower trend line of the channel.
MACD: MACD shows that both the moving averages are respecting the trend line(SEE CHART) and is expected to bounce again.
What to Expect:
As BTC is currently testing the dynamic support (trend line of the channel), the 4h candle should close above it, in order for the price to reverse.
We are expecting the $3921 to hold in case of any retracements. Any breakdown below it and close of a 4h candle below it would trigger the bears and might push the price further down towards the $3500 lows.