Bitcoin price analysis: downside is the path of least resistance for BTC/USD
|- The short-term technical picture implies more selling.
- Recovery path is obstructed with numerous resistance levels.
Bitcoin is sidelined under $3,400 handle which serves as a local resistance that separates the price from the stronger barrier created by the upper line of Bollinger Band (1-hour) at $3,500.
The digital coin No.1 stays under pressure amid strong bearish sentiments on the cryptocurrency markets. It appears that traders focus on uncertainties and negative factors and ignore positive developments. BTC/USD is down over 84% from its all-time peak, though, if history is any guide, it still has a chance for a strong recovery.
Bitcoin's short-term technical picture
On the intraday charts, BTC/USD stayed below the middle line of Bollinger Band (1-hour chart) and slipped under $3,400. The coin found support at $3,360 created by the lower edge of the above-said Bollinger Band. A sustainable move below will push the price towards $3,300 and to the recent low of $3,211.
The way to the upside is riddled with technical resistance levels, which include SMA100 at $3,417, the middle line of Bollinger Band at $3,430, SMA50 at $3,460 (all SMAs are 1-hour). Once these barriers are out of the way, the price will bump into $3,500 where new selling interest may appear. However, if it is cleared, the recovery will gather pace with the next focus on $3,600 and $3,630 (SMA200, 1-hour).
BTC/USD, 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.