Bitcoin price analysis: BTC/USD close to another massive sell-off

Experts believe that Bitcoin has not hit bottom yet.
Technically, the downside is the path of least resistance.

BTC/USD is sitting in a tight range, mostly unchanged since this time on Thursday. The market is frustrated by the low trading activity. However, once the market starts moving, the price fluctuations can be violent.

The cryptocurrency market has been suspiciously quiet lately with the best-known coin trading in a tight range for over a week. However, according to the director and co-founder of Global Block David Thomas, there is a high probability of another leg down with the aim at $3,100.

“An inability of BTC to remain above the 21-day moving average means that a sustained break of the $3,500 level remains high which would then put the December lows of $3,100 firmly back on the map and give the bears back control,” he wrote.

However, the expert notes that long and medium-term sentiments are positive, but BTC is not out of the woods yet. Basically, he shares the opinion that the price will retest lows before the recovery starts for real.

Bitcoin’s technical picture

While the initial resistance lies with $3,600, a move higher will not guarantee sustainable growth for BTC. The next hurdle, created by DMA50 at $3,660 might limit the upside and trigger a short-term correction. If this area is cleared, BTC/USD may extend the recovery towards $3,700. From the longer term point of view, $4,000-$4,200 area is critical. It includes 23.6% Fibo retracement level for the downside move from November 7 high at $6,584 to December 15 low at $3,126.

On the downside, a move under $3,500 will increase the selling pressure. Considering that there is little in terms of support levels until $3,126, the downside may be the path of least resistance at this stage.
BTC/USD, 1-day chart

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.