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

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