Following the recent influx of selling pressure that sent Bitcoin’s price spiraling below its previously established support level at $3,800, the cryptocurrency’s bulls were able to garner an influx of buying pressure that sent BTC back above $3,800 and towards $3,900.
It now appears that Bitcoin is facing relative levels of resistance at $3,900, and analysts believe that this is a key price level for BTC to break decisively above in order for the crypto to maintain its bullish momentum.
Bitcoin Price Surges Nearly 4%, But Faces Strong Resistance at $3,900
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $3,900. This past Sunday, BTC dropped below its previously established support level at $3,800 and fell to lows of $3,700 before trading sideways for a couple of days before surging this morning.
Although the bull’s ability to keep BTC’s price in the upper-$3,000 region is positive for the cryptocurrency, it has struggled to break decisively above $4,000, and may be unable to break above this level in the near-term if it is unable to surge above $3,900.
UB, a popular cryptocurrency analyst on Twitter, spoke about the importance of the $3,900 level in a recent tweet, explaining that BTC needs to push above $3,900-3,940 in order for a decisive break above $4,000 to be in the cards.
“$BTC – So far so good. Bitcoin is currently testing the first area of resistance (3830) after popping up a bit. The real test will be at 3900-3940. The reaction at those levels will be very important for either bullish or bearish arguments for the next few days.”
$BTC – So far so good.
Bitcoin is currently testing the first area of resistance (3830) after popping up a bit.
The real test will be at 3900-3940. The reaction at those levels will be very important for either bullish or bearish arguments for the next few days. #Bitcoin pic.twitter.com/sobKy85JBd
— UB (@CryptoUB) March 5, 2019
If Bitcoin continues to struggle to break above $4,000, it may be plausible that the crypto falls back to its 2018 lows of $3,200 before finding more buying pressure.
Analyst: Bitcoin Finding Strong Support at Top of Previous Pennant Resistance
Bitcoin’s latest move up may be due to it establishing the top of its previous pennant resistance as a strong level of support.
Crypto Rand, a popular cryptocurrency analyst on Twitter, recently noted that long positions in Bitcoin currently look far more attractive than short positions, as BTC has continued to respect the top of the old pennant resistance as support and has found strong horizontal support around $3,800.
“Not trading it for now but way more interested on long setups. Horrible spot to short #Bitcoin. The old pennant resistance still playing as support. Confluence of the downtrend channel with the horizontal support and 0.786 FIB.”
Not trading it for now but way more interested on long setups. Horrible spot to short #Bitcoin.
The old pennant resistance still playing as support. Confluence of the downtrend channel with the horizontal support and 0,786 FIB.
More info and analysis: https://t.co/WV7FKTZRa0 pic.twitter.com/7b3rh1xDY5
— Crypto Rand (@crypto_rand) March 5, 2019
Traders and analysts alike will be closely watching to see if Bitcoin is able to decisively move above the low-$3,900 region, as if it does it may retest $4,200, which is a recently established level of strong resistance.
Featured image from Shutterstock.
