Compared to the trading action of earlier this week, Bitcoin's (BTC) price was relatively muted on Saturday as the digital asset traded between $5,045 and $5,641. Although the digital asset dropped more than 50.viii% on March 12, it has since regained 37.five% to merchandise at $v,200.

Crypto market daily price chart

Crypto market place daily price chart. Source: Coin360

Many in the crypto space are withal attempting to slice together a narrative that explains the carnage of the past week and for the time being, the weekend closure of major equities markets appears to be mitigating some of the Coronavirus fear, which has negatively impacted both markets for weeks.

Some traders and analysts go on to point accusatory fingers at BitMEX, claiming foul play on their part immune the situation to escalate to near catastrophic levels.

BTC USDT daily chart

BTC USDT daily chart. Source: TradingView

At the time of writing, there is a neutral Doji candlestick on the daily timeframe, showing traders remain uncertain on the direction the price may take and the candlestick by itself is neither bullish or bearish.

Referring to other indicators helps provide a better picture of the prevailing tendency and a glance at the relative force alphabetize (RSI) shows the indicator flat in oversold territory

BTC USDT 4-hour chart

BTC USDT 4-hour chart. Source: TradingView

On the shorter, 4-hour timeframe, traders will notice that the RSI remains flat as buy and sell volume subtract and Bitcoin trades within a narrowing range between $five,517 and $5,021.

Some traders would contend that the short-term frame supports a bullish case for Bitcoin as each iv-hour candlestick has formed a lower-loftier as price descends lower but the moving boilerplate convergence divergence, Stochastic RSI and RSI trend upward, and the MACD histogram shows an increase in positive momentum.

Such bullish divergences have been the signal du jour for crypto traders for some time and the drop in trading volume and tightening Bollinger Bands also signal that an explosive move is leap to occur before the weekly close.

Currently, the cost is pinned below $5,500 where in that location is a loftier volume node on the book contour visible range (VPVR) and at that place is support at $5,200 and $4,850. If Bitcoin cost could push button above $v,500 in that location is open-air overhead and the price could rise to $7,650 but this is dependent on sustained volume and traders' confidence that the result which catalyzed to drop to $3,770 has ended.

The current price activeness suggests that traders are taking profits as the range top is reached instead of opening long positions and buying on breakouts.

Bullish scenario

BTC USDT 4-hour chart

BTC USDT 4-60 minutes chart. Source: TradingView

If the price can break above the $5,500 resistance and reclaim the one-time back up at $6,300 to $6,400 this would be an encouraging stride. Every bit mentioned earlier, given Bitcoin's oversold position and the volume gap from $5,500 to $7,650 could easily exist exploited past a high book fasten.

Such a movement would set the price back in the $7,750 range Bitcoin traded in prior to last week'southward meltdown and also set the asset up for a motility back to $eight,500.

Bearish scenario

As shown by the daily fourth dimension frame, losing the $5,200 support would exist far less than ideal, even though the toll Bitcoin bounced higher when the price dropped to $3,770 on March 13.

BTC USDT daily chart

BTC USDT daily nautical chart. Source: TradingView

To appointment, at that place is sufficient involvement in Bitcoin at $3,769, a zone Bitcoin toll nigh pierced during the precipitous drib. Beneath this level, the price of Bitcoin would look to course a double bottom at $3,384 and $3,177.

I must remember that while not uncharacteristic of the sector, Bitcoin price is being heavily impacted past the financial crisis created by the COVID-19 pandemic.

As the situation grows worse, investors expected that the markets will worsen and so a cocky-fulfilling bike driven past fright and threat or long-term economic slowdown impact asset prices.

Over the coming weeks, one should expect to come across a serial of multilateral stimulus packages launched by various governments, thus as equities markets peradventure rise from financial bailouts, investor sentiment for hazard-on assets, commodities and stocks could improve.

Until and so, it might be wise to either wait along the sidelines until a bottom is found in traditional markets or for those trading, play conspicuously divers ranges and rest in greenbacks past the closing market bell or bedtime each day.

Apparently, some Bitcoin investors will propose taking long positions and accumulating as a range develops just with the electric current global economic dubiousness, perhaps it is better for those with express capital to residue in greenbacks in order to live to trade some other day.

The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves take a chance. You lot should conduct your ain research when making a decision.