Bitcoin has struggled to cleanly break out of the $4,000 resistance level and remain above it for more than three months, staying in a tight range between $3,300 to $4,000.
If the dominant cryptocurrency fails to test $4,000 again and slips, traders foresee the Bitcoin price declining to the $3,300 to $3,500 range.
“$4,400-$4,500 area is where I intend to hedge if we go up. If break down, keep an eye for absorption below $3,330 (HTF liquidity pool). The $2,500-$2,850 area is where I start buying spot if no absorption and we break-down to new lows,” a trader said.
But, if the Bitcoin price maintains its momentum at the current level and gradually climbs up to the mid-$4,000 region, analysts project a strong accumulation phase for the asset.
The valuation of the cryptocurrency market has recovered at a fast pace in recent weeks.
Since February 15, within a month, the cryptocurrency market has added $14 billion, fueled by the unforeseen rally of alternative cryptocurrencies and tokens.