Bitcoin market update: BTC/USD bears set eyes on weekly SMA200

Bitcoin sits marginally above $3,400 after an uneventful weekend trading. The first digital finished with losses the third consecutive week as the cryptocurrency market cannot gain bullish momentum. BTC/USD is mostly unchanged both on a day-over-day basis and since the beginning of Monday. Since the beginning of the year, the coin lost nearly 7% of its value. 

Meanwhile, Twitter CEO Jack Dorsey believes that Bitcoin will eventually become a native currency of the Internet. 

Speaking at “The Joe Rogan Experience” he stressed that the Internet would have its own money. Bitcoin has a chance to get this status, as it was born on the Internet, grew on the Internet and passed stress-tests. 

Bitcoin’s technical picture

From the long-term perspective, BTC/USD is supported by weekly SMA200 at $3,325. This barrier stopped the carnage back in December and likely to serve as a substantial barrier this time around. However, if this support is broken, the downside momentum will gain traction with the next aim at the psychological $3,000.

On the upside, the first strong hurdle is created by DMA50 currently at $3,675. BTC/USD has not traded above DMA50 since January 19, and the bulls are likely to stop short of that level. Meanwhile, a sustainable move higher will increase bullish momentum and allow for the recovery towards $4,000 and $4,110 (January 8 high).