- We might see another leg down before the market starts recovering.
- BTC/USD is squeezed between $3,750 and $3,560.
During early Asian hours, one Bitcoin was changing hands at $3,580, mostly unchanged both on a daily basis and since the beginning of the day. The digital asset No.1 has been rangebound recently as the market gropes for direction. Bitcoin’s market share stays at 52.5%, according to CoinMarketCap.
Meanwhile, experts are worried that Bitcoin could not hold ground after a short-lived attempt to break above $4,000. This development might signal that the coin may retest the recent lows or even proceed lower before the bottom is reached.
“Bitcoin continues to struggle and is in the mid-$3k’s. If prices were oversold, we would have bounced by now. This lethargic base tells us that demand is still incredibly weak and this selloff still hasn’t found a bottom,” analyst Jani Ziedens of the Cracked Market blog commented.
The expert believes that this is a signal that Bitcoin is about to resume the downside.
Looking technically, BTC/USD needs to recover above DMA50, currently at $3,754. However, even stronger hurdle comes at $3,800. It is created by a combination of technical indicators, including 38.2% Fibo retracement level weekly and Bollinger Band 1-day Middle.
On the downside, a sustainable movement below $3,600-$3,560 area will unleash bearish potential and take the price towards $3,300.
BTC/USD, 1-day chart
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.
Recommended Content
Editors’ Picks
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.