As we know that bitcoin is one of the powerful cryptocurrency and it has changed the world a lot, there are so many users of bitcoin for now in worldwide who using it on a regular bases. Cryptocurrency has changed the whole system of currency market and its becoming one of the major currency worldwide, though the term cryptocurrency is still confusing for so many and still there is a lot of time when people would be fully known to it. By the way in this chapter we are gonna talk about the Bitcoin Price Chart Study for 2020.
The year of 2020 is getting worse due to the corona virus which is covid-19 most of financial markets struggling a lot due to it but if we see bitcoin its getting some very good movement, if you will compare last 2,3 months market is pretty good and its getting back up for a uptrend movement.That we gonna cover later in the chart, According to our price analysis cryptocurrency markte is still in a good shape because it does not shown any negative impact after the middle of March month.
Chart Study or Bitcoin Price Analysis 2020
The first important and the good thing about Bitcoin is that it is still holding the support of important 200 Moving average (Price $5900). As shown in the Weekly chart below Bitcoin is getting a very good support from the Moving Average 200 and market is slightly bullish for now. If you are new to the financial market then would like to explain for you that 200 Day Moving average is one of the powerful trend indicator in any type of financial market, tough we are talking about Bitcoin in this topic so would like to concentrate on it. One of the popular trend indicator moving average 200 which suggesting us that we are still in a good positive zone for now. Along with it we can see that market had tried once to pass out the area of 200 day moving average. It went down a little bit but was not able to break it fully.
As shown above in the image last 7,8 Candlesticks has more buyers than the sellers means to say that this weekly chart does contain a very good information about the market buyers and sellers behavior for now. Buyers are getting stronger than the sellers. Overall the indication is good and this can be a very good point of market uptrend root.
Inverted Head & Shoulder Pattern:
This is an another positive indication for the price of bitcoin. If you have some idea about technical analysis we would like to explain here that Head & Shoulder and Inverted Head & Shoulder these are very popular technical chart pattern in Cryptocurrency Market even you can use it in Forex, Stock in any financial market instrument as well.
Look technical analysis is not an 100% trading signal here, it has some limitations as well and there is on analysis which can be 100% correct for trading or long term holding in Cryptocurrency market. We have to just be careful with our Money Management and Risk Management always. By the way this is the positive indication that we able to see in the chart of Bitcoin An Inverted Head & Shoulder forming in Bitcoin.
Support & Resistance View:
The area of important support of $5900 play an very important role in future especially if we see that market is coming back down and hitting that important area. If we see that market is crossing the area $5900, $5800 then another crucial support is coming downside which is on $3850 to $3900 area.
On the other hand if we will look upside the important zone of Resistance would be $10518, $12300, $13200, $13850. Support and resistance is just a simple theory of human behavior or we can say market buyers and sellers approach. We have to just understand their buying and selling zones and according to that we make our trading analysis here.
The year of 2020 is seeming full of unexpected results for every trader or investor. This is just a beginning but according to our analysis Bitcoin market reaction is much different from other currency market, stock market, or Commodity market for now. We should not forget that the country China is a very popular for the use of Bitcoin, and in China whole country is dealing with Bitcoin in big way. So this is the year when we should look our charts very carefully and should take our decision wisely. We hope you make a good money this year from the bitcoin. Thanks for reading.