- Bitcoin is suspiciously quiet during Asian hours on Wednesday.
- It is anybody’s guess if the coin has reached the bottom.
Bitcoin has recovered from the recent lows to trade at $4,383 at the time of writing. While the general trend remains strongly bearish, the largest digital coin has entered a period of consolidation. A sustainable recovery looks unlikely at this stage as the market sentiments are spoiled by a host of negative news, including FCA’s possible ban on crypto derivatives and Bakkt decision to postpone the platform launch until 2019.
Bitcoin’s technical picture
From a short-term perspective. BTC/USD is trading in a range limited by critical $4,000 on the upside and $4,800 (SMA50, 1-hour) on the upside. Bitcoin bulls are likely to defend $4,000 handle, however, if it gives way, the collapse will gain traction with the next target at SMA200 (weekly) at $3,143 in focus.
On the upside. a sustainable recovery above $4,800 and $5,000 will elevate bearish pressure and allow for further gains towards $5,500-$5,580 (the lower border of the previous tight range and SMA200, 1-hour) and, potentially, to $6,000.
“It’s always difficult to say where the market could stabilize again in such a wild market, but $3,000 looks like an interesting level. This time last year, the sky was the limit for bitcoin and all the altcoins that piggybacked a ride, this year the ground below is looking very unsteady,” Craig Erlam, a senior market analyst at Oanda commented.
BTC/USD,1-hour chart
Share
