- Bitcoin is supported immediately at the 100-day SMA in the same 1-hour range.
- The breakout is in the short-term and is inclined to send BTC/USD back above $4,000.
The cryptocurrency market has started to suffer under the rough claws of the bears. The current declines come after a successful weekend trading where Bitcoin (BTC) broke above the resistance range with a hurdle at $3,900. Moreover, the bulls had drawn the line in the sand preventing losses below the range support at $3,700. However, following the bullish momentum, there was a break above the hourly Simple Moving Average (SMA) (both the 50-day and the 100-day).
The breakout made above $4,000 and even corrected past $4,050. Unfortunately, the bullish momentum fizzled out short of $4,100. This opened the door for the bears to rush in for a revenge mission forming a bullish flag pattern as on the hourly timeframe chart.
Bitcoin is supported immediately at the 100-day SMA in the same range. A weak bullish momentum is forming above the SMA while heading towards the bull flag pattern breakout. The breakout is in the short-term and is inclined to send BTC/USD back above $4,000. The buyers have their eyes glued on $4,100 but the major resistance is at $4,200.
As mentioned above, Bitcoin price will come face to face with a significant hurdle at $4,008.67. There will not be many struggles between this point and the major resistance at $4,298 according to the confluence detector tool below. In the medium-term $4,500 is in sight and within reach especially if Bitcoin can find a catalyst and support above $4,200.
Meanwhile, Bitcoin has weak support at $3,925.72. In addition to that, stronger support rests at $3,842. If push comes to shove and the bears’ grip sends the asset further down, $3,718.30 will work as a pit stop.
In other news, the founders of Gemini exchange Cameron and Tyler have expressed their commitment to ensuring that a Bitcoin exchange-traded fund (ETF) becomes a reality. Cameron also told the Reddit community that Bitcoin still has a big potential and will stay in the first position in the market for a long time.
Read more:
Gemini exchange founders, the Winklevoss twins are not giving up on Bitcoin ETF
Bitcoin price analysis: ECB council member calls cryptocurrencies “a fairy-tale story.
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