Bullrun postponed: Bitcoin fell below $ 4,000

Unfortunately, the full beginning of the uptrend, and was formed on Monday. Bitcoin was unable to hold above $ 4,000 and went to a new wave of correction. Soon the bitcoin will continue to decline to the level of $ 3,500.

The General situation looks like this:

  • asset was unable to break through resistance in the area of 4240 dollars and rapidly went downhill;
  • the cryptocurrency fell below the local line of the upward trend on the 1-hour chart.
  • former support at line 3850 dollars again turned into resistance.

Today Bitcoin is trading at 3800 dollars. Over the past 24 hours, the coin fell by 9 percent.

Technical analysis

Yesterday Bitcoin was in a consolidation phase near the level of $ 4250. Trading pair BTC/USD has not managed to break this resistance, therefore, the failed test was a prerequisite to the rollback. The fall was quite strong — the cryptocurrency fell below support zone of $ 4,000 and 100 SMA moving average scale 1-hour chart.

Price momentum score enough dynamics to break through the Fibonacci level of 0.618 laid on the last wave of growth from 3788 to $ 4240. Another bad sign for the bulls the sellers have enough power to push the price even lower 3788 dollars. If in the near future will be fairly strong rebound, Bitcoin will continue to fall up to $ 3,500.

Source: NewsBTC

Why Bitcoin fell

While we should prepare for a lateral movement which can last several days. I advise you to carefully watch the market and not to take hasty decisions. Sufficient evidence for a confident uptrend have not yet, so to open long positions is not recommended.

The readings of technical indicators also do not have to growth — the MACD is again moved into the bearish zone and the RSI is below average.

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