Bitcoin price analysis: Rejection at $3,700 propels the bulls back to the drawing board
|- Bitcoin price is stuck within the confines of a ranging channel, unable to break above $3,700.
- Bitcoin sideways is bound to continue amid widespread market declines.
The majority of the cryptocurrencies in the market are in the red starting with the market leader, Bitcoin. However, there are selected digital assets that are recording gains on Monday 21, 2019. For instance, Litecoin (LTC) which has corrected higher 0.53%, IOTA is up 2.53% on the day while Ethereum Classic is up 0.84%. Bitcoin price, on the other hand, is correcting lower a subtle 0.13% following the rejection at $3,700 during the weekend trading.
At the time of writing, Bitcoin is trading at $3,530 after the declines failed to find support at $3,600. Bitcoin showed high levels of stability last week where the upside was capped at $3,700 and support established at $3,500. The recent slide took a pit stop at $3,500 as buyers rushed to prevent further breakdown towards 2019 lows around $3,580.
Technically Bitcoin is on the verge of another drop before it can correct to the upside. For instance, the Moving Average Divergence Convergence (MACD) which had recovered from the levels around -89 has slipped back into the negative precisely at -27. In addition to that, the Relative Strength Index (RSI) is holding position slightly above the oversold levels to show that the buyers have the power to prevent further breakdown and probably sustain Bitcoin sideways trading.
Upside correction will find resistance at the broken support at $3,600 but key resistance is highlighted by the range resistance at $3,700. A correction past $3,800 could open the way for BTC/USD to recoil above $4,000 in the medium term.
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BTC/USD 4-hour chart
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