- Bitcoin price falls below $4,000 again; unable to break short-term psychological level.
- “We are still in a bear market. We are much nearer towards the end of it,” says prominent crypto trader.
Bitcoin price has continued to correct lower despite the fact that there has been some positive news in the market. Nasdaq and VanEck-backed “crypto 2.0″; a crypto future plan was announced but Bitcoin has not been able to come out of the bear channel with resistance at $4,500 and support at $3,500.
Following the adventure towards $3,500, BTC/USD embarked on a recovery that saw it break above $4,000. However, upside correction remained limited below $4,500. It is also opened December trading below $4,000 and since then gains have been capped by both the trendline resistance at the resistance at $4,250. Presently, the price is dancing with $3,963 after failing to breach the short-term resistance at $4,000. This is now the technical and psychological level that is preventing the buyers from breaking out towards $4,500 (medium-term term resistance and supply zone).
Elsewhere, a prominent cryptocurrency trader and analyst referred to as extraordinaire the Crypto Dog told his massive followers on Twitter that the bear trend is still present. He believes that Bitcoin is likely to continue with the downward trend contrary to the expectation of many investors and experts. He notes that Bitcoin price is currently not able to breakout of a short-term contracting triangle pattern (ascending).
“We are still in a bear market. We are much nearer towards the end of it, I imagine, but there is no sense being net positive BTC above $4k at this point. A bear market doesn’t end and we go straight up. If the bottom is in, then I still imagine we at least re-test the lows,” the Crypto Dog reckoned.
BTC/USD 1-hour chart
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