The number of short positions on Bitcoin is growing. Will there be a fall?

Even after the strong pressure of sellers of Bitcoin was able to hold above 3,800$. Every day this level of support becomes much “tighter” and represents a huge interest for the bulls. And yet the line $ 4,000 still remains a major barrier to subsequent growth of the cryptocurrency.

Failing to test the line only fueled the bears and force them to open new short positions. This week their number has increased dramatically. Note, if Bitcoin continues to hang out below $ 4,000, it is possible a new drain in the area of $ 3,000.

Technical analysis

Today Bitcoin is trading at $ 3920. For the past day, the cryptocurrency has not changed in price, despite the minor pullback graph short BTC/USD started to grow inexorably. If the trend continues, soon the number of shorts outweigh the number of long positions. Last time such situation on the market was developed in the beginning of January.

Now Bitcoin is once again testing the middle line of the local upward channel at the scale of 1-hourly chart. Under favourable conditions, the asset can grow up to the top line of the figure, which is in the region of $ 4,000.

Bitcoin stuck in this channel since the end of February. At the moment the crypto currency goes through the middle line. Altcoins continue to decline, and the index of dominance of Bitcoin remains relatively stable above 51 percent.

According to financial analyst FxPro Alex kuptsikevich companies, long-term support of the asset still remains the level of 3600$. He will not allow the bears to the line $ 3000. Resistance in the area of $ 4,000 Kuptsikevich believes a strong barrier. It is possible that before the end of March we will again see a long flat. And yet you have time to subscribe to our cryptcat.


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