On cryptocurrency-to-fiat exchanges like Coinbase and Bitstamp, Bitcoin (BTC) has slightly corrected to $3,700 but the breakout of the dominant cryptocurrency above the $3,700 mark has led analysts to consider the possibility of the asset testing major resistance levels in the $3,800 to $4,200 range.
Last week, the pair had dipped as low as $3,130 amid warnings that a much larger fall could be imminent, potentially taking Bitcoin to $1,300 or lower.
Meanwhile, in altcoin markets, it was Bitcoin Cash (BCH) which led the resurgence, the asset having previously fallen more precipitously than most, to trade well below its August 2017 issuing price.
Looking at the chart, Bitcoin price has a number of support levels above $3600 now with the most major support at $3650. Other supports lie at around $3680 and $3700. There is a major bullish pattern line set with support near $3650 on the 24-hour chart of bitcoin.
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News that the big short position of former IMF economist Mark Dow has been closed led traders to think that he might be seeing a bottom on bitcoin price. This likely spurred a flurry of long positions as a rebound might be in the works from here.
Also, Blockchain Capital partner Spencer Bogart noted in an interview with CNBC Money that it’s now a fantastic time to buy bitcoin. Increased coverage on these bullish forecasts could further stoke gains.