- Bitcoin must breakout from the bullish flag pattern for a sustained move past the key resistance at $3,700.
- The bulls must defend the short-term support at $3,640 – $3,620. To prevent further breakdown.
Following the upward movement yesterday, Bitcoin made a tremendous recovery from the weekend lows below $3,500. Prior to the breakout, the crypto’s upside has been capped below $3,560. Moreover, short-term support had been established at $3,250. The correction above the 15′ Simple Moving Averages (SMA) opened the door for a sharp upward surge in an engulfing candle.
As discussed in the price analysis published on Monday, Bitcoin stepped above the resistance at $3,600. Further upside movement made it past $3,680 but failed to reach $3,700. Since then, the price has been trending lower within a bullish flag pattern as seen in the chart below.
Aside from the bull flag pattern breakout that is expected in the near-term, Bitcoin is dancing between the 50-day SMA and the 100-day SMA in the same time range. Like most of the assets, BTC/USD is swimming in the sea of red waters. It is recording intraday losses of 0.44% and risks breaking below the short-term support at $3,640 – $3,620.
Bitcoin must breakout from the bullish flag pattern for a sustained move past the key resistance at $3,700. Trading above this level will open the door for gains towards $4,000. Meanwhile, it essential that the bulls defend the above-mentioned support in order to prevent further breakdown towards 2019 lows below $3,500.
BTC/USD 15′ chart
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