On December 3, Bitcoin (BTC) was on the verge of dipping below a major support level at $4,000 and at the time, several analysts said that a drop below the support level could result in BTC dropping to mid-$3,000.
The unexpected swift recovery of BTC has allowed the dominant cryptocurrency to avoid what potentially could have been a large drop to the lower range of $3,300 to $3,600.
Where is the Market Heading to?
Prior to the abrupt recovery of Bitcoin to $4,000, technical analysts said that the momentum of the asset was severely weak at $3,800.
“I don’t see any reason to be bullish on BTC at this level. Not that this won’t pump to test resistance $3,930 or higher, but longing here is a gamble I’m not interested in,” The Crypto Dog said on Monday.
Hsaka, a cryptocurrency trader, echoed the general sentiment of the market and said:
“Dump, consolidation, dump. One of the most frequently occurring patterns on the corn, generally has three legs to it. Targeting the next blue level on a clean break of the swing low.”
Technical indicators demonstrated a large fall in price was in play but instead, the price of the BTC experienced an unpredictable recovery.
https://www.ccn.com/bitcoin-price-crucially-recovers-from-3700-can-4000-hold-in-short-term/