It’s unbelievable that the two-week gains have been lost for only 10 hours.
So far, it looks like there is a need for correction and there is much demand around this level. But the situation is very delicate. Next levels of support are $ 3,600 (current range) and $ 3,480 – $ 3,500. The latter is an important support area. Its breakthrough may cause a fall below the bottom for 2018. Breaking $ 3,500 could quickly lead to re-testing support at $ 3,300.
We can say cautiously that there may be a correction. Possible targets could be the substantial support that turned into a resistance of $ 3,700 (along with a 200-day MA and FiB rating 38.2% since the last downturn), or even $ 3,800. Volume of trade: yesterday’s daily volume is the highest level since December 21. This tells us that vendors are still active. As expected, BitFinex’s open short positions increased drastically to 24.5K.