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  • Bitcoin is under pressure after a failed recovery attempt.
  • The coin needs to climb above the longer-term resistance located at $6,000.

Bitcoin is flirting with $3,700 at press time as the market resumed the downside movement after a short recovery attempt. The longer the coin stays under $4,000, the stronger the bearish case is. In the short run, we are in for range-bound trading, at least until the beginning of the European and North America trading hours. The panic selling may kick in once the price breaks below $3,500 once again with the next aim at weekly SMA at $3,139.  

Bitcoin’s technical picture

Looking technically, Bitcoin is well supported by the above mentioned weekly SMA200. This area is likely to attract new buy-the-dip lovers and trigger the recovery. However, the overall setup remains negative as long as the price stays below $4,000.

The price has not yet realized its downside potential after it broke free from a long-term triangle pattern. The projected downside target may be as low as $2,000, which means that we are vulnerable to new losses unless some positive news reverses the trend.

On the upside, the critical resistance is created by SMA 100 weekly and the lower line of the broken triangle at $6,000. A sustainable recovery above this area will improve the long0tern technical picture and mitigate the bearish pressure, setting up a stage for an extended recovery.

BTC/USD, the weekly chart