Analysts continue to watch Bitcoin’s key support levels as the cryptocurrency fails to garner any significant amounts of buying pressure to propel it above $4,000, which may ultimately lead it to drop back towards its strong support levels in the low-$3,000 region.
Bitcoin Finds Continued Support Around $3,900
At the time of writing Bitcoin is trading up marginally at its current price of $3,915 and is up slightly from its daily lows of $3,870. Importantly, BTC has found some levels of buying pressure in the upper-$3,800 region, but it has continued to struggle to move towards $4,000.“$BTC (LONGS V SHORTS) – longs continue to deleverage as shorts continue to rise and look to pass longs in open positions for the first time since early January,” Chonis Trading, a popular cryptocurrency trader on Twitter explained in a recent tweet.
(LONGS V SHORTS) – longs continue to deleverage as shorts continue to rise and look to pass longs in open positions for the first time since early January… — BIG Chonis (@BigChonis)
BTC Currently Caught in Trading Channel Between $3,800 and $4,000
Furthermore, Chonis also explained that Bitcoin is currently back-testing its middle channel resistance, which could either lead it to surge to the upper end of the channel – which is around $4,000 – or to sink towards the bottom end at around $3,800.“$BTC – has been stuck in this channel since late February, currently backtesting middle channel resistance. Alts continue to pop as #bitcoin remains relatively stable as dominance hovers around 51%…Channel resistance at $4k and rising support around $3750…”
– has been stuck in this channel since late February, currently backtesting middle channel resistance. Alts continue to pop as remains relatively stable as dominance hovers around 51%…Channel resistance at $4k and rising support around $3750… — BIG Chonis (@BigChonis)
Alex Kuptsikevich, financial analyst at FxPro, also spoke about the crypto’s current levels of resistance and support, noting that the mid-$3,600 region remains a key support level that is blocking BTC from dropping back towards its 2018 lows around $3,000.
“The price level at $4K remains a serious resistance for BTC, and the market clearly lacks a positive [catalyst] to overcome this threshold… From the technical analysis side, bitcoin caught between resistance at $4,000 and 50-day moving average support, which almost a month ago turned from resistance into support. At the moment, this level passes through $3,657, leaving the potential for decline,” he explained while speaking to .
As the week drags on and Bitcoin reacts to these aforementioned levels of support and resistance, traders and analysts alike will garner a greater understanding of where the cryptocurrency, and the overall markets, are heading next.
Featured image from Shutterstock.
