Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 20th & 21st March 2025
Introduction
Continuing on from Wednesday’s session, Bitcoin’s price action on Thursday started with support at the 50 EMA during pre-market hours. As the market opened, price formed a valid double bottom pattern, enticing traders to take long positions. However, it appears that large institutions took advantage of the breakout above the neckline, using the influx of buy orders as liquidity to enter short positions. This institutional move triggered an impulse sell-off, causing Bitcoin to drop by 3.32% leading into the afternoon session.
30-Minute Analysis
Despite this sharp decline, price found support at the critical 83.7K level and managed to reclaim ground above the 200 EMA before the close. Subsequent price action saw Bitcoin attempting to hold 83.9K as support, but resistance at the 50 EMA prevented further upside momentum. This led to an overnight sell-off into Friday morning, with Bitcoin once again testing support at 83.7K.
Friday’s session remained relatively flat, with Bitcoin trading within a tight range of 83.4K to 84.2K. The lack of volatility and clear direction heading into the weekend suggests a period of consolidation, with price hovering around the support level of 83.6K and resistance at 84.3K.
Daily Analysis
On the daily chart, Bitcoin rejected the key 0.618 Fibonacci retracement zone and failed to maintain support above the 200 EMA. Friday’s daily candle reflected the range-bound nature of the session, confirming the indecisiveness in price action. The broader bear market structure remains intact, with no signs of reversal or confirmation that Bitcoin can sustain levels above the 200 EMA. Until a significant shift in structure occurs, bearish sentiment continues to dominate the market outlook.
Summary
Bitcoin’s price action over the past two days has been largely defined by institutional liquidity plays and a subsequent period of consolidation. The market remains in a bearish state, and traders should be cautious until a definitive break in structure occurs. Eyes will be on the upcoming sessions to determine if Bitcoin can regain momentum or if further downside pressure is imminent.
