After several days of constant decline and bottoming, the price of Bitcoin finally showed signs of recovery. Within three days, the bulls managed to return the price of Bitcoin above the $35000, $36,000 and $37000 levels. At the time of publication, the bulls are fighting for the level of 38000.
On the hourly chart, the BTC/USD pair managed to return above the 100-hour moving average and form an uptrend line. This line provides support around 37600. With BTC/USD already breaking resistance around 37300-37400, it has increased the chances of a return above 38000. This level remains the nearest strong resistance level for BTC/USD. A move above this level and a break of 38200 will start a sustained growth in the medium term. However, in order to start a long-term recovery, the pair needs to rise above 40000 to overcome the resistance on the daily chart.
On the other hand, the current recovery seems to be only a temporary correction. Traders believe that the crypto market has already entered a bearish phase, which could stretch for the next few months. In 2018, we observed a similar situation. Then Bitcoin lost 80% of its price compared to the high of 2017. Analysts predict that bears will dominate the market at least until the summer.
If the attempt to rise above 38000 fails, we will see a new round of Bitcoin price decline. In this case, the BTC/USD pair will quickly drop below 37000 and meet support at 36600. The next support is at 35800, where the MA100 line is also forming. A breakdown of this level will send the BTC/USD pair to the area of 35400.
It is also worth noting that Bitcoin whales are using the current price decline to their advantage. As it became known, the third-largest Bitcoin whale now holds more BTC than Michael Saylor’s MicroStrategy. Recently, he has been actively buying Bitcoins. At the time of publication, the third largest whale has 124,485 BTC while MicroStrategy owns 124,391 BTC.