Bitcoin update: DMA100 may tame BTC bears
- Bitcoin has been sliding since the beginning of the week.
- A short-term recovery may be in store.
A failed attempted to settle above $4,000 ended in a sharp sell-off on Monday that leads the largest digital coin out there to the lowest level since February 27. BTC/USD is changing hands marginally below $3,700 at the time of writing with the bearish with no signs of the immediate recovery.
Looking technically, BTC/USD is well supported by DMA100 at $3,686. This is a strong barrier that may slow down the bearish trend for some time. The bears attempted to take it out of the way on Monday, but new buying orders located around that handle helped to engineer a recovery.
A sustainable move lower will open up the way towards the next critical support area $3,630-3,600 that includes DMA50. Below, we have very little in terms of support levels until psychological $3,500.
On the upside, BTC bulls should take the price back towards $3,800 to mitigate an immediate downside pressure. 1-hour SMA levels and also SMA50 (4-hour) located on the approach to the psychological handle may slow down the recovery. Though, a sustainable move above the said level will clear the way towards $3,870-$3,900 area strengthened by 38.2% Fibo retracement levels (monthly and weekly).
BTC/USD, 1D chart
Author
Tanya Abrosimova
Independent Analyst
