Bitcoin price analysis: Bullish trend resumed, BTC/USD clinches to $3,600 support

  • Bitcoin is down over 6% in recent 24 hours.
  • Short-term consolidation may end in new losses.

Bitcoin is changing hands at $3,627, having lost 6.4% of its value since this time on Thursday. Despite some stabilization during early Asian hours, the largest digital coin is vulnerable to new losses ahead of the weekend. Bitcoin's dominance recovered from the recent low of 50.9% to 52.2% as traders tend to buy larger coins during periods of uncertainty.

After a positive start to 2019, the cryptocurrency market resumed the downside trend, though there are no clear reasons for the sell-off except the reversal of the earlier gains. 

"The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon. At this point, the gains made since the start of the year have now been reversed and we're back to a neutral 2019," Mati Greenspan, a senior analyst in eToro commented.

Bitcoin's technical picture

BTC/USD got back below DMA50, which darkens the technical picture and implies more losses ahead, especially, if the price settles below $3,600 handle. This development will attract new sellers and open up the way towards $3,400 guarded by 23.6% Fibo retracement level and to 2018 low at $3,127. To improve the technical picture and mitigate immediate bearish pressure, we will need to see sustainable growth above $3,770-$3,800 that encompasses the above-said DMA50. Once this area is cleared, the price may continue recovery towards critical $4,000.

Considering that the Relative Strength Index (RSI) is flat both on the daily and intraday charts, we might have some period of consolidation within the current range.

BTC/USD, the daily chart

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