Bitcoin price analysis: BTC/USD may retest 2018 low
- The short-term technical picture implies that bears are still behind the driving wheel.
- Bitcoin dominance is growing amid market uncertainty.
Bitcoin is changing hands at $3,379, unchanged in the recent 24 hours and down 1.5% since the beginning of Thursday. The largest digital currency has been rangebound during the past several days, consolidating losses after a collapse to the recent low of $3,211. Bitcoin market dominance continues growing as trades prefer to dump altcoins and seek shelter in Bitcoin in times of uncertainty.
Bitcoin's intraday technical picture
On 4-hour chart, BTC/USD attempted a recovery within a downside channel, but bullish efforts are contained by a strong resistance created by SMA50 (4-hour) and the sloping trendline on approach to psychological $3,500. The price reached $3,486 high on Wednesday before the downside movement resumed. Considering the downside bias of the Relative Strength Index (RSI), BTC/USD may return to the support area located at the recent low of $3,211. Most likely, new buyers will jump it at this level and trigger another recovery way. Otherwise, a sustainable movement lower will take us to the critical $3,000 strengthened by the lower line of the downside channel.
On the upside, once $3,500 is cleared, the price will extend the bullish recovery with the next aim at $3,800 (middle line of Bollinger Band (daily)) and $4,000, which is deemed pivotal for the mid-term sentiments.
BTC/USD, 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
