Bitcoin sideways grinding could swing to $3,700

Bitcoin creeps lower from February highs.
Bitcoin upside is limited and sideways trading has taken over.

Bitcoin seems unbothered by the news that the largest bank in the United States is planning to issue its own cryptocurrency. JP Morgan is currently running trails on JPM Coin and is likely to start operations in five months.

Meanwhile, Bitcoin is exchanging hands at $3,580. It is only a week since the rally that had BTC touch $3,700. The asset has been grinding lower below $3,600, however, the bulls have drawn a line in the sand preventing declines below $3,550.

Unlike the bull rally last Friday, Bitcoin has corrected higher only 0.59% on the day. Generally, the market is in the green with assets like NEO and Litecoin (LTC) leading with gains of 6.3% and 2.93% in that order. Although the bullish momentum cannot be compared to the one seven days ago, the market is poised to record significant gains to the upside in the near-term.

As far as Bitcoin is trading, this sideways trend has shifted the attention from the psychological $4,000 to $3,700. BTC/USD is immediately supported by a confluence of indicators as per the data on the confluence detector tool at 3,558.26; the 4-hour 50-day Simple Moving Average, the daily 23.6% Fib retracement level as well as the 4-hour Bollinger Band 4-hour lower region. It is important that the bulls keep the price above $3,500 in the short-term to allow for higher correction above $3,600. However, if the support broken Bitcoin could tailspin towards 2019 lows at $3,340 and even refresh December low at $3,146.

As mentioned, Bitcoin upside is limited and sideways trading has taken over above the short-term support at $3,550. If the bulls pull out of the prevailing trend and position BTC above $3,600, further gains heading to $3,700 will encounter resistance at $3,632.66 which highlights the daily 50-SMA and the 161.8% Fib level in the same range.

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