Continue the fall of Bitcoin in the near future? Response graphs

On Thursday, Bitcoin fell 8 percent in just a few hours. As a result of discharge of the main cryptocurrency market capitalization declined by nearly $ 10 billion. The situation remains critical, but in the short term may develop and bullish scenario.

The General situation looks like this:

  • Bitcoin price fell below the psychologically important level of $ 4,000;
  • asset trying to start a pullback from the strong support area in the district 3550 dollars;
  • the break of the resistance at the level of $ 4,000 will mean the formation of a double bottom and the beginning of bullrun.

Tonight, Bitcoin is trading at $ 3695. For the past day the coin fell 3 percent.

Technical analysis

Judging by the 4-hour chart, the asset has made a false break of the support. There are several main reasons to believe so. First, a line a little below the current market price of Bitcoin has several times had to prove its “strength” over the past two months.

Second, an abrupt drain just ended in the area between 3556 and 3652 dollars. In other words, while the bears are no forces for further pressure on the market. As long as the cryptocurrency maintains its position above $ 3,500, this scenario can be considered likely.

That growth really began, now buyers need to take the initiative and give the dynamics of trading with Bitcoin. If break below $ 3,500 all-taki will take place, next support level will serve as a line in the district 3110$. When a persistent downward movement with large trading volumes, we should expect the fall down to the level of $ 2,500.

Source: TradingView

So now, traders are advised to closely monitor support in the area of $ 3,500. At any sign of a strong rebound should open a long position, in case of a fall below — to short.

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