Bitcoin sank below the Triangle pattern in the support area with a daily close recently which pushed the price down to the edge of $3,880 support area. Despite the formation of the descending Triangle pattern, a sudden breakout below support was a surprise for the bulls. Meanwhile, the price is currently being propelled higher away from the strong support area of $3,800-80.
The price managed to reject off the support area quite well but could not establish impulsive counter-momentum to break above the dynamic level of 20 EMA. Moreover, MACD is showing a bullish crossover currently that indicates vaguely further bullish momentum in the coming days. As the price remains below $3,950-$4,000, the bearish pressure is expected to push the price lower with a target towards $3,500-600 support area in the coming days. On the contrary, a break above $4,000 with a daily close will encourage further bullish pressure with an upward target towards $4,500.
SUPPORT: 3,500-600, 3,800-80
RESISTANCE: 3,950, 4,000, 4,250, 4,500
The material has been provided by InstaForex Company - www.instaforex.com