In the last 7 days Bitcoin several times gave reason to open a profitable short positions. Falling below $ 4,000, main cryptocurrency is not yet takes the special characteristics that could be interpreted as forming a bottom for prices of an asset.
The General situation looks like this:
- after another fall Bitcoin touched a new local low at around $ 3,500;
- on 4-hour chart of the cryptocurrency generated downward trend with the nearest resistance in the zone $ 4,000;
- asset several times unsuccessfully tested the line in the area of 3750 dollars. It is expected to further decline.
This morning, the Bitcoin is trading at $ 3640. For the past day, the cryptocurrency has lost 0.17 percent of the cost.
Unfortunately, the bulls did not manage to obtain complete control over the market this week, Bitcoin was not able to consolidate above the $ 3,750 that was the start of the fall. Now investors still have hopes for a reversal that may take place after potential body forming “inverted head and shoulders” on 4-hour chart.
In the same time scale cryptocurrency is below the moving average 100 SMA, which greatly complicates the task of buyers. If Bitcoin can’t grow above $ 3800, we recommend you to open a short position. In this situation, a fall below $ 3,500 will be the trigger to drain up to $ 3,000.
From the point of view of fundamental analysis, the situation is the opposite. On the stock exchange Bitfinex the number of open long positions almost in 1,5 times exceeds the number of shorts. In other words, the majority of market participants are leaning towards the implementation of the bullish scenario in the near future.
Let’s hope they’re right. More interesting notes about trading can be found in our cryptodata.
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