Opinion: the price of Bitcoin risks falling below $ 3700

CoinDesk analyst Omkar Godboul assumes that soon the price of the first cryptocurrency is waiting for a rollback to marks in the $ 3,600-3,800 range.

Currently, BTC is in the $ 3920-4055 range. However, soon the price may break through the lower limit of this corridor. In particular, this is evidenced by the Doji candle , formed around a 21-week moving average (MA). This candle signals uncertainty and that the strength of the bulls is already running out.

After leaving the range, the next support levels will be $ 3,775 and $ 3,658. On the other hand, closing the daily candle above $ 4055 will give strength to buyers. However, so far such a scenario seems unlikely.

Weekly schedule

The BTC / USD chart of Bitstamp from TradingView

Directly under the 21-week MA, a Doji candle was formed, whose opening and closing prices were almost on the same level. If Bitcoin in the near future once again fails to break through this important line of dynamic support, then the price will follow it down.

However, considering the inverted hammer pattern formed in the second half of February and the moderate price recovery that followed the last five weeks, the bulls still have chances to confirm the reversal of the long-term trend. However, for this they will have to overcome resistance at the level of $ 4,190, corresponding to the maximum of the “hammer”.

Lower timeframes

BTC / USD daily and four-hour BTC / USD charts from TradingView

On the daily chart, there is a noticeable bearish absorption and a change in the inclination of the 5-day MA from ascending to descending, as well as the intersection of this moving average with MA 10. All this indicates a change in sentiment and increased pressure from sellers.

On the four-hour timeframe, there is a side channel with the lower limit at $ 3,920, which can be broken in the next day or two. After that, the price is likely to stay at $ 3,658, corresponding to the minimum of February 27.

If Bitcoin breaks through the upper limit of the lateral range at $ 4,055, then the next resistance could be $ 4,200. However, the ill-fated 21-week MA, whose slope is still descending, is a serious obstacle to it.

Previously, the trader @filbfilb based on the dynamics of the ratio of long and short positions on the Bitcoin exchange Bitfinex came to the conclusion that Bitcoin will soon reach the psychological mark of $ 5,000 .

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