Bitcoin managed to recover from Sunday's low and is trading in the middle of the range from $ 3,600 to $ 3,700. However, the upward momentum faded and left the price in a narrow range without a clear short-term direction. Recent assumptions about Russia's plans to acquire Bitcoin in the amount of $ 10 billion have not been confirmed by official statements, which means that the potential positive effect was short-lived.
There are many strong technical indicators on both sides of the current price. This technical scheme confirms the assumption that the coin can still remain in the range, although a steady breakthrough in any direction will cause a strong movement.
On the other hand, the resistance zone reaches $ 3,800. This is where the strongest set of technical indicators is marked. They include multiple SMA levels, 38.2% Fibonacci retracement (week) and Bollinger band (1 day). However, bulls will have to go through 23.6% of the Fibonacci retracement level (weekly), SMA200 (4 hours) and the upper line of the Bollinger band (4 hours) at $ 3,700 – $ 3,720 before they reach the above-mentioned critical area.
On the other hand, temporary support is created at the level of $ 3,560. This is the minimum of the previous week and 38.2% Fibonacci retracement for 1 month. This area separates BTC from a deeper decline. If the price falls lower, the sale may continue to $ 3,330, and then to the lowest level of 2018 – $ 3,127.
What do you think about the current situation with BTC? What is your short-term price forecast for the first cryptocurrency?
