Bitcoin market update: BTC/USD is not out of the wood yet

  • Matti Greenspan says we need more effort to tame the bears.
  • BTC/USD is capped by DMA50.

Bitcoin dipped under $3,600 and continued to move down. BTC/USD is changing hands at $3,575, down 0.6% since this time on Monday. The first digital asset has valet a victim to profit-taking on short-term speculative positions. However, it has a chance to resume the upside as long as it stays above $3,540-$3,500 area.

Meanwhile, Matti Greenspan from eToro warns that the cryptocurrency market is not out of the woods yet. According to the expert, we need a much more profound upside push to tame the bears. 

“In order to say definitively that the bear market is over, we would need a strong break above the key psychological barrier of $5,000. In any case, even though the technical indicators remain bearish, the fundamentals continue to grow stronger. Volume across crypto exchanges over the last 24 hours have reached a fresh high of $25 billion on Friday and have sustained well above the baseline of $15 billion since” he explained. 

Bitcoin’s technical picture

From the longer-term point of view, BTC/USD is still effectively capped by $3,650 area, strengthened by DMA50. Meanwhile, the ultimate pivot point is located above $4,000 handle and guarded by DMA100. BTC/USD haven’t been trading above DMA100 since September 5, 2018. However, considering the downward-looking RSI on the daily chart, an extended upside looks less likely at this point.

On the downside, a sustainable move below $3,500 will signal that the recovery attempt is over and bring the area below $3,400 back into focus.

BTC/USD, daily chart

BEST BROKERS TO TRADE CRYPTO

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.