Bitcoin (BTC) reached to $4,000 and hitting $3,800 was a sensational crash.
BTC/USD is bartering at $3,779 at the time of writing, down 10% from the recent peak of $4,187. The inability to settle above critical resistance area after a breakthrough and develop a sustainable upside momentum bodes ill for Bitcoin bull, at least in the short run.
“That last sell-off is a sobering reminder that crypto is unsettled and risky. For instance, if we can keep $3,800 here, it would be a nice place to build support,”Matings Greenspan from eToro wrote in his Twitter account before the prices broke below $3,800 handle.
BTC/USD moved under DMA100 (currently at $3,780). Thus, now we are looking at $3,600, which is the next critical support for BTC/USD created by SMA200 (4-hour chart) and DMA50. Once it is broken, the downside may be extended towards $3,350-$3,300 congestion area.
So, how we can see a recovery at least above $3,850 (SMA200, 1-hour). Coming target is standing at $4,000 and the recent high of $4,187.
However, considering the neutral position of the Relative Strength Index (RSI) and a lack of enthusiasm on the market after the sell-off, the bull might need some time to lick their wounds before another assault.