Down again: Bitcoin might fall back to $ 3,500 in the near future

Every day that Bitcoin holds under the line of the 3800 dollars, increases the probability of a new strong cryptocurrency drain. Now it is under bearish pressure. If rollback is just above and will take place, it is unlikely that the upward movement will be delayed up to $ 4,000.

The General situation looks like this:

  • asset and failed to gain a foothold above the resistance zone of 3900 dollars;
  • on the 1-hour chart is still valid downtrend line from the nearest point of resistance in the area of 3,720 USD.
  • the price of cryptocurrency is in the area of “activism” bears, so in the near future is not possible to drop up to $ 3,500.

Today Bitcoin is trading at $ 3672. For the past day , the cryptocurrency fell by 3.3 percent.

Technical analysis

After falling below $ 3850 on the market actively began to act the sellers, because the overcoming of that support line has become a good signal to open short positions. On the background of the downward movement of the asset even dropped a line 3563 of dollars, but quickly pulled back up. Now Bitcoin is trading below the moving average SMA 100, indicating a high likelihood of continued fall.

Cryptocurrency is able to break through the 0.236 Fibonacci level, laid on a wave draining from 3855 to $ 3563. At the moment the main obstacle to growth is the line of the local downtrend. It coincides with the Fibonacci 0.5 level, so the buyers to overcome it will be difficult.

Source: NewsBTC

To form a new uptrend, at least in the medium term, Bitcoin will need to break above 3800 dollars, and then to gain a foothold above the resistance area of $ 4,000. Unfortunately, by the end of the week, such a move is unlikely to happen, so while it is not necessary to open long positions.

Technical indicators also point to a continuation of the drain — MACD is in bearish zone and the RSI dipped below average.

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