Bitcoin failed to consolidate above $ 4,000. What’s next?

The price of Bitcoin has not managed to stay in higher level of $ 4,000, therefore, the cryptocurrency now has a chance to fall back to the nearest support. A good basis for a rebound of the asset can be a line of 3800 dollars. After that, Bitcoin will likely continue to “storm” of resistance.

The overall situation now looks like this:

  • the bears managed to fend off the bulls in the region of $ 4,000;
  • on the 1-hour chart has formed a pattern to break the support at line 3875 dollars;
  • BTC/USD will continue to be adjusted to the level of 3800 dollars in the near future.

This morning, the Bitcoin is trading at $ 3983. For the past day the price of the cryptocurrency rose 0.99 percent.

Technical analysis

Yesterday we witnessed a very encouraging price rally after a few weeks of anxious waiting Bitcoin finally managed to break above the line 3750 dollars. The break of the resistance ended up to $ 4,000, where the bulls faced the first serious obstacle. As a result of unsuccessful testing of the level of the cryptocurrency fell back a little lower.

During the downward movement of the local level was broken 0.236 Fibonacci laid on a wave of growth with up to 3684 3973 dollars. However, the following cryptocurrency is unlikely to fail, because any more or less serious drain immediately ready to buy the bulls.

Source: TradingView

Now Bitcoin is above 100 SMA, and within the scope of several time frames begins to form an uptrend. While the market situation looks quite promising, the likelihood of asset growth in the medium term is very high. However, while it is recommended to refrain from trading — the final confirmation of the uptrend will be a clear break of level $ 4,000 with large trading volumes.

As mentioned earlier, the testimony of technical indicators saying about the recoil. The MACD line has been placed in bearish zone, and RSI is still average.


Leave a Reply

Your email address will not be published. Required fields are marked *