Weekend Trading Analysis: A Detailed Breakdown of Market Momentum BTC 29th - 30th March 2025
30-Minute Analysis
Following Friday's strong move to the downside, Bitcoin's price action on the 30-minute chart indicated the formation of an accumulation zone. After the session closed, BTC found support at $83.6K and resistance at $84.3K. However, price eventually broke below this range, moving out of the area of interest before establishing support at $82.3K and resistance at $82.8K. A subsequent break above the $82.8K resistance saw this level flip to support, with a new resistance level forming at $83.4K—effectively creating another accumulation zone. Once this support was breached, the downtrend resumed, with the 50 EMA acting as resistance.
When trading setups like this, it's crucial to align with the overall market trend. In a downtrend, shorting at the resistance of an accumulation zone provides an optimal entry, while in an uptrend, longing at the support level of an accumulation zone presents a favorable opportunity. Identifying these zones and playing with the trend remains a strong approach for momentum traders.
Daily Analysis
On the daily chart, price was unable to sustain levels above the descending trendline. This was foreshadowed by a divergence in volume during the recent leg up, suggesting weakening bullish momentum. BTC also fell back below both the 200 EMA and the key area of interest, reinforcing bearish sentiment. Notably, Friday’s candle was the only one to close above the 20-period volume moving average, signaling that sellers had conviction in their move to the downside. This selling pressure continued through the weekend, keeping BTC below key technical levels.
Looking ahead to Monday's open, heightened volatility is expected. Over the weekend, former U.S. President Donald Trump doubled down on global tariffs and hinted at additional sanctions on Russia. These developments may be perceived by investors as potential catalysts for geopolitical tension, which could influence market sentiment. Traders should remain cautious and prepare for sharp price movements as the market reacts to these headlines.
Summary
In summary, BTC remains in a downtrend, with clear rejection from key levels and continued selling pressure. The inability to hold above major support zones and the rejection from the 50 EMA further validate the bearish outlook. While short-term accumulation zones have formed, price action suggests that rallies are likely to be met with resistance. Heading into the new week, traders should monitor global macroeconomic developments closely, as they may heavily influence BTC’s direction.
