Bitcoin is still in the global downward trend. Recently, the cryptocurrency has managed to form a new local line of resistance, which now will not allow the asset is above $ 4,000. Soon Bitcoin will hardly be able to overcome the area of 3700 dollars and gain a foothold above.
The General situation looks like this:
- Bitcoin extends fall below $ 3,600 and updated the annual minimum;
- on 4-hour chart has formed a downtrend with resistance near 3630$;
- asset konsolidiruyutsya in the channel between 3200 and 3600 dollars.
On Sunday evening the Bitcoin is trading around $ 3670. In the past 24 hours, the cryptocurrency has grown by 7 percent and reached a market cap of 63 billion dollars.
This week, the coin fell below support zone of $ 4,000, while the bears mustered enough strength to lower the asset almost to the main resistance line of $ 3,000. On a scale of 4-hour chart, the Bitcoin is trading well below the 100 SMA, which is not the best sign for buyers.
However, yesterday, the cryptocurrency fell back slightly and was able to overcome the 0.236 Fibonacci level, laid on a wave draining from 4050 to $ 3215. While upward price movement stopped several resistance lines in the area of $ 3,600.
So, to grow to $ 4000 at least in the short term, buyers need to overcome the levels 3550, 3600 and 3700 dollars on good trading volumes. A rise above $ 4,000 will mark the beginning of a local uptrend up to 5700 dollars.
Below the fall we hold the only two support lines — 3000 and 2800 dollars. Technical indicators yet point to the continuation of the retracement. MACD (on the scale of a 4-hour chart) is in a bullish zone, and RSI is gradually approaching the oversold zone.
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