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Bitcoin has recently broken under a rising short-term trend line to signal that a trend reversal may be in place. The price has found support in the $ 3,600 area, however, and a pullback is occurring.
The 100 SMA is still below the 200 longer-term SMA in this time frame of one hour, indicating that the path of least resistance is downward. In other words, the selloff is likely to resume rather than the other way around. Then again, the price exceeded the dynamic flare limit of 100 SMA to indicate the yield in bullish pressure.
The 200 SMA coincides with the 50% retracement level of Fibonacci to add to its resistance as resistance. If he holds it, the price may return to the low or lower swing. A larger correction could last up to 61.8% of Fib near the broken trend line and $ 4,000 at the highest psychological level.
RSI is already pointing to overbought conditions or exhaustion among buyers. The oscillator is starting to turn south to signal a return in selling pressure that could stay a little longer or until the oversold conditions are met. Stochastic has some space to climb before hitting the overbought territory, but is also showing signs of subsidence.
A break over the Fibs and a broken trend line may signal that buyers are pressuring and may make another attempt to overcome the $ 4,200 key barrier.
The news that Russia may try to use bitcoins to replace US dollar reserves in response to imposed sanctions has slightly increased the value of cryptocurrency. After all, this could mean a big market for bitcoins if it were to happen.
Vladislav Ginko, economist at the Russian presidential academy for the national economy and public administration, said:
"I believe that [the time] It will come when other countries start doing so and Russia will have a brilliant opportunity to invest in heavily oversold Bitcoins. "
