The results of the week: Bitcoin has drawn a new bottom. The fall is over?

It seems that the situation in the market gradually comes back into balance. Bitcoin found support at 3120 dollars and is not going to fall further. Given the strong oversold of the asset, the likelihood of rebound to 3400 dollars is quite high. In this upward movement can begin as early as next week.

The General situation looks like this:

  • the price of bitcoin has formed a new yearly low on line 3120 dollars and a little rolled up;
  • Bitcoin broke through the line of the local downtrend on the 4 hour chart.
  • in the short term may be a correction of the drain up to $ 3,200.

At the moment Bitcoin is trading at $ 3295. For the past day, the cryptocurrency rose 2.5 percent.

Technical analysis

This week Bitcoin was in a persistent downtrend that lasted from $ 3640 dollars to a new annual minimum at the point of 3120 dollars. By the beginning of the weekend, the cryptocurrency fell back slightly up and it may finish the week, breaking above 3300 dollars. However, the scale of the 4-hour chart the asset is still below the moving average SMA 100.

Today’s buyers still managed to win some small victory — Bitcoin is now above the downtrend on 4-hour chart. Of faster growth it will be possible after breaking the resistance zone of $ 3380. If the bulls manage to gain strength, the next stop will be the level of 3600$.

Source: NewsBTC

So, what strategy to stick to traders? Note that the cryptocurrency is still falling on the 1 day chart, so to open long on each rebound can be quite dangerous. A small long position should be opened only after a steady growth above $ 3,600. Now the safest strategy is to observe the market. Perhaps he will give us another opportunity to short.

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