- 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
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