Bitcoin price analysis: BTC/USD bulls are hesitant, $4,000 may give way
|- Bitcoin is hovering around $4,000 after strong growth at the start of the week.
- The upside momentum looks unconvincing so far.
BTC/USD stays dangerously close to $4,000 handle. The has been rangebound since the beginning of the week as the upside momentum has faded away after a short-lived attempt to break above $4,100 resistance level. The holiday season is over, but it seems that Bitcoin has yet to return to the market and prove their determination.
Many cryptocurrency experts prefer to stay cautiously optimistic even after BTC/USD managed to settle above $4,000 handle. Bitcoin recovered nearly 28% of its value from 2018 low of $3,128; however, it is not enough to convince traders that the bearish trend is over.
“With BTC yet to show any real grip above the $4,000 level, there is still much market comment that the bear market is still apparent and yet to show signs of complete exhaustion and turnaround,” David Thomas, director and co-founder of U.K. cryptocurrency broker GlobalBlock, explained.
“Whilst the bears are less vehement that an imminent ‘zero’ is coming, few are willing to make a call on the short-term direction for bitcoin,” he added.
Bitcoin's technical picture
On the 4-hour chart, Bitcoin is supported by a combination of SMA100 and SMA50 clustered around $3,840 level. This support area is followed by the short-term upside trendline and a psychological $3,800. Once it is cleared, the sell-off may be extended towards $3,665 (SMA200, 4-hour) and $3,645 (the lowest level in 2019 so far).
On the upside, we need to see a recovery at least above the recent high at $4,110. Once this barrier is out of the way, the upside momentum may gain traction and push the price towards $4,200 and $4,234 (pre-Christmas high).
BTC/USD, 4-hour chart
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