Despite the strong bullish sentiment we observed at the middle of the past week, Bitcoin’s USD price has failed to establish a new support level at $4,100 and fell below the $4,000 mark today. As our market data shows, the past seven days were a period of high trading volume, yet the cryptocurrency failed to hit new highs as many hoped it would happen. From the current signals, it seems as though we can expect the price to stay in this range for now, waiting for a new direction.
As reported by Bloomberg, the GTI Global Strength Indicator is hinting that the world’s largest crypto asset by market capitalization is heading towards the overbought territory from where it could take on a new course downwards. With Bitcoin’s price falling back shortly after it breached $4,000, market analysts predict that there may be another retest of the lows. This is because the nature of the market suggests that there is often more than one test of the bottom and so far Bitcoin tested its depths only once when it hit $3,100.
Looking at past behavior, Bitcoin followed a similar pattern back in February when it hit the overbought levels and suffered a 3% drop over the following two weeks. However, as the current price suggests, the coin is yet to confirm these predictions.
Market Bullish; Price Still Holds
Since our update from last week, Bitcoin’s price went through several changes, dropping down from a weekly high of $4,097.36 on Thursday afternoon to its lowest point of $3,937.93 on Monday evening, before shooting back up again to break $4,000. What’s clearly evident from the market stats is that the 24-hour trading volume spiked in both instances when the price went up, at one point even climbing over $11 billion. Since early morning today, the trading volume has been slowly climbing again, suggesting that there will be room for a new price correction depending on the market’s direction. The volume is currently at $11.2 billion and rising while the market capitalization is at $71.3 billion.
Our technical analysis shows that Bitcoin is very bullish right now, with all 12 moving averages and 7 out of 12 technical oscillators being in the green zone and sending a “buy” signal. However, the gap between the SMA 100 and SMA 200 is narrowing, showing there might be a reversal of trends, while Stochastic, RSI, and Williams %R are already in the overbought zone. With Bitcoin establishing a new support at $3,940 and the bullish market supported by a high trading volume, the coin could be headed for a new high at $4,020 and a break of the $4,040 resistance. But if the trends change and Bitcoin breaks below $3,920, we could see a further slide downwards. So keep a close watch on the market, particularly near the end of the week.
Google Fails to Recognize Malicious Wallet App
One of the more interesting news from the crypto sector this week was the discovery of a scam advertisement on Google’s YouTube by a helpful Reddit User, the Next Web reports. The said ad was for a legitimate cryptocurrency wallet called Electrum only the end result was not to navigate users to the app but to download malicious software. The advertisement suggested users click on the link which was typed in as the real web address for the wallet but once it was clicked it immediately executed a download of a bad exe. file. This type of scam is called “typosquatting” and it wasn’t the first time Electrum was targeted by it.