Bitcoin recently dipped below $3600 and has continue to move down, it is currently hanging at $3571 at BTC/USD as at today market. The first cryptocurrency has become a victim to profit taking on short speculative positions.
In a recent newsletter by etoro’s Mati Greenspan, the veteran analyst points out that China was on holiday recently. Coming back to the crypto markets, they seem to be in a “buying mood.”
Matti Greenspan warns that the cryptocurrency market is not yet out of the wood. According to the expert, we need a much more bigger push upside to tame the bears.
"In order to say definitively that the bear market is over, we would need a strong break above the key psychological barrier of $5,000. In any case, even though the technical indicators remain bearish, the fundamentals continue to grow stronger. Volume across crypto exchanges over the last 24 hours have reached a fresh high of $25 billion on Friday and have sustained well above the baseline of $15 billion since.”
There is also the issue of a lot of new people entering the space. This is undeniable given the way the market has gone up overall. The money isn’t exiting other cryptos and injecting into Bitcoin or Litecoin. Instead, it’s coming in through the main entrance, fiat.
Predicting Bitcoin’s technical future
From the longer-term point of view, BTC/USD is still effectively capped by $3,650 area, strengthened by DMA50. Meanwhile, the ultimate pivot point is located above $4,000 handle and guarded by DMA100. BTC/USD haven’t been trading above DMA100 since September 5, 2018. However, considering the downward-looking RSI on the daily chart, an extended upside looks less likely at this point.
On the downside, a sustainable move below $3,500 will signal that the recovery attempt is over and bring the area below $3,400 back into focus.
