- Bitcoin corrected above $3,900 but failed to sustain growth towards $4,000.
- Bitcoin must sustain growth above $4,000 to give the traders confidence that $4,000 is achievable.
The crypto market has remained unchanged in spite of the news that CBOE is putting Bitcoin futures on hold. Bitcoin has been lethargic below $3,900 since the beginning of this week. Over the last weekend, the asset corrected above $3,900 but failed to sustain growth towards $4,000.
The trading yesterday saw the bulls fall into a bear trap: BTC/USD spiked briefly almost touching $3,900 but quickly turned around canceling the gains. The largest crypto tested the short-term support $3,700 before correcting higher above $3,850.
At press time, Bitcoin is exchanging hands at $3,851 within the 50 SMA resistance and the 100 SMA support 4-hour chart. As discussed before, Bitcoin must sustain growth above $4,000 to give the traders confidence that $4,000 is achievable. However, the traders are likely to get exhausted holding the position above $3,800 and are likely to sell. This is likely to create more supply and less demand. Bitcoin price will react by exploring the levels close to $3,500; a move that will create more demand and reverse the trend upwards.
Meanwhile, Bitcoin is supported by the bullish trendline; other support levels are $3,800 and $3,700. The RSI is horizontal at 51 while the MACD is flat out on at the mean line (0.0). Bitcoin sideways trading is likely to last longer as market activity reduces.
Read more on CBOE Bitcoin futures:
No more Bitcoin futures on CBOE, crypto market doesn’t care
BTC/USD 4-hour chart