CoinDesk Markets analyst Omkar Godboul believes that support at $ 3,700 proved to be good, but the emerging bear flag on the hourly chart indicates a threat of further decline. If the daily candle closes below $ 3,714, then the trend change to the downward will be official, he said.

In the coming hours, the price of Bitcoin can not fall below $ 3,764, which will confirm the realization of the bear flag. Godboul noted that bulls still have a chance to demonstrate recovery, but on lower timeframes the likelihood of a fall is increasing.

On a 4-hour chart, the moving average with parameter 50 crossed the moving average with parameter 200, which is a bearish pattern. At the same time, the RSI fluctuates in the zone of 50-30, leaving enough space to fall.

If the candlestick closes below $ 3,714 on the daily chart, the next support level will be $ 3,531.

Recall that on Sunday the number of short positions on Bitcoin on the Bitfinex exchange reached an 11-month low.

At the moment (13:00 UTC) the number of shorts has recovered somewhat, while the number of long positions is slowly falling. The ratio of long positions to short is 1.41.

At the same time, Bitcoin on Bitstamp is trading at around $ 3,780.

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