Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 19th March 2025
Following on from yesterday’s session, Bitcoin experienced extreme volatility due to a series of high-impact events. The FOMC meeting, speeches from Jerome Powell and Donald Trump, and the SEC dropping its case against Ripple created an environment where technical analysis was largely ineffective. Events of this magnitude can shift market sentiment in an instant, making it risky for traders to rely on technical indicators. This was evident in the formation of a Long-Legged Doji on the 30-minute chart, highlighting the market's indecision.
This particular candle saw a price movement of 1.85%, which would have likely liquidated many traders operating with tight stop losses. With price fluctuating so erratically, trading during such periods becomes highly unpredictable. Now that the market has cooled off, technical analysis can once again provide meaningful insights.
30-Minute Analysis
Post-event price action saw Bitcoin push into a key range at $87,000. However, a gravestone doji formed at this level, backed by volume above the 20MA, indicating potential buyer exhaustion and the likelihood of a reversal. This suggests that many traders took profits, leading to a pullback. Currently, Bitcoin is finding some support around the $85,600 price range. This level will be crucial to watch in the short term as traders look for signs of continuation or further downside movement.
Daily Analysis
On the daily time frame, Bitcoin has broken above a key area of interest and cleared the 200 EMA. A hold above this level could signal the early stages of a potential bullish reversal. However, for full confirmation of a trend shift, price would need to break the descending trendline that has been in play since December 19, 2024. Additionally, price must sweep the previous lower high at $94,900 to confirm a sustained bullish move.
Traders should also take note of Trump’s upcoming speech at the New York Digital Asset Summit, scheduled for late tomorrow’s session. Given his influence on market sentiment, his remarks could introduce another wave of volatility, particularly in the later stages of the trading session.
Summary
Bitcoin’s price action over the past 24 hours has been heavily dictated by fundamental events, making it challenging to trade with technical precision. Now that the market is stabilizing, traders can refocus on key technical levels. With price currently sitting above the 200 EMA but facing resistance at $87,000, the next major move will depend on whether bulls can sustain momentum or if another round of selling pressure emerges. Additionally, Trump's upcoming speech has the potential to create another period of high volatility, making risk management essential for those trading in the coming sessions.
