Bitcoin is dancing on the $4,000 support again for the second time in three days, after a brief bull run to $4,370 yesterday failed to break the downtrending resistance line. Over 4hr candles, we can see that there is a great deal of uncertainty over Bitcoin’s short-term future at this particular psychological support, as a number of candles have closed near their opening prices. It appears likely that neither buyers nor sellers are sure whether Bitcoin will recover from this level or continue downtrending, so for now the asset is traveling sideways with little volatility.
In recent months, the $3,000 level has seemingly become the newly appointed ‘danger zone’ for Bitcoin, with many crypto proponents including Morgan Creek Capital Founder Anthony Pompliano, BitMEX CEO Arthur Hayes and Civic CEO Vinny Lingham all forecasting Bitcoin to hit this new bottom sometime in 2019. But how likely is this threat, and will the $3,000 level really spell doom for BTC if the asset does manage to fall on to it? Let’s take a look.
On the 4hr BTC/USD chart we can see that the asset had been tracking faithfully to three main trend lines (black); a clear downtrending resistance that has so far held down BTC on three separate occasions over the last 12 days, a middle level that has acted as both a support and resistance for the asset, and a lower support line that has caught the price action’s more recent lower lows.
In the last 24hrs, howeve...
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