Bitcoin may hit $3,500 before recovery sets in - expert opinion

• Bitcoin is rangebound during Asian hours, unchanged since the start of the day.
• The bottom is not reached yet, but it is around the corner.

Bitcoin has barely changed since the beginning of Thursday. The digital coin No.1 is trading marginally above $4,500 as the cryptocurrency market is recovering from the multi-months lows. 

BTC/USD has gained 4% in recent 24 hours, however, further upside may be limited as recovery lacks momentum. Moreover, Asian hours are often calm, as the market starts moving when European traders join the game.

The prominent crypto bull Tom Lee reiterated his bullish forecast, saying that Bitcoin will trade at $15,000 by the end of the year. 

Meanwhile, technical analyst from CrackedMarket Jani Ziedins sees more losses towards $3,500 before a sustainable recovery process sets in.  

“Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work,” the expert explained.

Bitcoin's short-term technical picture

From a short-term perspective. BTC/USD is still in a range limited by psychological $4,000 on the upside and $4,900 (SMA100, 1-hour) on the upside. If this handle is cleared, the recovery may be extended towards $5,000.

On the downside, the nearest support is created by SMS50 (1-hour) currently at $4,400. It is followed by $4,335-$4,300 congestion zone that separates us from the recent low $4,050.

BTC/USD, 1-hour chart

 

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