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Bitcoin price analysis: BTC/USD reverses weekend gains

  • Bitcoin recovery falters at $3,600 resistance.
  • Institutional money may save the market from a deeper collapse.

Bitcoin settled at $3,530 after an attempt to recover above $3,600 on Sunday. The crypto market has stabilized after the recent collapse to new multi-month lows, from the long-term point of view, the bearish sentiments are still dominating the market.

Fundamentally, there are no new reasons for the sell-off; however, the market is driven by FUD phenomenon, which means traders pay little attention to what's really going on in the industry. 

Meanwhile, institutional investors demonstrate the growing interest in digital money. Thus, Fidelity, the fourth largest asset manager in the world, is exploring possibilities of including altcoins in its custody services; while many cryptocurrency exchanges are expanding functionality for institutional customers, citing growing demand. Most recently, Binance added sub-account feature to cater its corporate clients.

"We are thrilled to launch our long-anticipated Sub-Account Feature, bringing improved managerial control to institutional account holders," the company announced in its Twitter.

Bitcoin's technical picture

From the long-term point of view, BTC/USD managed to stay above weekly SMA200 ($3,173), which is a positive signal. However, we need to see a recovery above the lower border of Bollinger Band (weekly) at $3,605 to mitigate the immediate bearish pressure. The coin closed the third consecutive week below this line. The Relative Strength Index (RSI) stays close to oversold territory, though there are no apparent signs of reversal as of yet.

BTC/USD,weekly chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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