After its 50% crash last week, the price of bitcoin recovered in a typical cryptocurrency-way.
By crashing down to 3900$ and forming a 2020 low in price, Bitcoin confirmed a one year support.

As a result of bitcoin respecting this long term support-line, we touched several times in December 2018 and February 2019, the price went up about 60% from 3900$ to 6950$. From Friday to Monday bitcoin went down from 5950$ to 4450$. From Tuesday to today the Bulls proofed their strength and drove the price up to 6900$.

Seeing this kind of reaction to a crash of the size we saw last week indicates that the sell-off was caused by a massive overreaction.

Due to the Coronavirus and its affections to the world economy and especially the self-employed, many people decided to sell their bitcoin in order to get liquidity.

Even though the virus is not defeated jet, some nations (China, South-Correa…) made great progress in fighting it.

Where are we now?

The price of bitcoin formed a long-term triangle formation.

Bitcoin is trapped between the support-line we formed in December 2018 , February 2019 and the bottom of the recent sell-off and the resistance-line that connects the All-time-high with the top of the last run up (which found his top at approx. 13.800 USD) and the recent top we were forming on February 14th , again proved its significance.

Where are we going?

Because of the fact, that this triangle is neither a symmetrical- nor a descending triangle formation, there is no bullish or bearish bias, however bitcoin spend more time on the resistance side than the support side of the triangle, which could be a bullish sign

Conclusion

By pumping the price of bitcoin 40% in 3 days, the bulls proofed their strength in times of big uncertainty.
Because of this uncertainty, the bullish momentum for bitcoin could be over quickly. It just needs a few more countries to lock-down or rising death rates to dump the price.

I would not be surprised, if bitcoin retests the lows of 3900$ in the next weeks.

This is not financial advice!

Always do your own research!