Bitcoin price calm after the storm: The path to recovery is a tough one
|- Bitcoin succumbs to declines dropping below $3,400.
- Bitcoin bulls ignore stochastic overbought levels to push for recovery towards $3,400 resistance.
Investors in the cryptocurrency space are anxiously waiting for the market to bounce back following the overextended declines. On the contrary, the market is painted red everywhere. The Asian trading session today saw Bitcoin plunge sharply below the short-term support at $3,420 and 3,400. The rest of the market reacted in tandem recording declines between 1% and 6% on the day.
Bitcoin is currently seen trading at $3,376.44 after finding a support at $3,360. However, the bounce that occurred off the support has not been able to correct above $3,380. Besides, the price is trading below both the 15-minutes 50-day Simple Moving Average (SMA) and the 100-day SMA.
Looking at the indicators on the same 15-minutes chart, we that the bulls are fighting to gain ground against the buyers. The slow stochastic oscillator has not only retreated from the oversold but also recovered into the overbought. Bitcoin bulls intend to ignore the overbought levels as they focus on $3,400 resistance levels. A correction above $3,380 is required for a correction towards $3,400. Otherwise, BTC/USD is likely to reverse the trend and even test the recent support at $3,360.
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