Bitcoin (BTC): $ 4,200 / $ 5,000, last technical bulwark before the 3,000

The Classes of Bitcoin (BTC) continues to defend the technical support of $ 4,200 / $ 5,000, the last bulwark before the $ 3,100. Let's do it technical point short term.

Key technical factors of the article:

• The bitcoin price has experienced an explosion of implied volatility in the equity market, including exits from positions in the CME futures market.
• In terms of technical analysis of BTC / USD, the market still defends the support at 4200/5000, the last rampart chartist before 3000.

Following the fall of bitcoin price and altcoins last week due to soaring implied volatility in the international equity market, I brought you an article with the provocative headline, " a purge that gives a long-term opportunity on BTC "

Historically, stock market shocks, market crashes, do not end just after the double-digit downturn. This is the first step before a further decline (bear market), then comes stabilization and finally the creation of a new uptrend.

In the case of the CAC 40 price, it had taken several months in 1987, 2002 and 2008 to re-engage a sustainable upward momentum. BUT, keep in mind that the very long term charts indicate that the BTC bottom trend is bullish.

In my humble subjective opinion (everyone must imperatively keep their critical mind), the BTC sees itself as a long term investment, the famous "buy & hold". It is for this reason that I use technical analysis to determine the support areas that can attract capital.

In the current market shock, we will have to be very patient, return to "normal" financial markets will take months. But as usual, the Stock market will be ahead of the real economy and improving the overall health situation.

With this in mind, to build a long-term position, without leverage, on the BTC, the violent drop sequences are opportunities. But no trader / investor will have the precise point, so you have to think in terms of average price, with several progressive inputs.

Back to Bitcoin price technical analysis : the market is still hanging on to support at $ 4,200 / $ 5,000, the trend line for the years 2018/2019. This is the last technical bulwark before the $ 3100.

Here again 3 possible market cases, which are based on a daily acquired closing:

• CASE 1: Trading Range between $ 4,200 and $ 5,700 (first tangible resistance)
• CASE 2: Sudden breakdown of $ 4,200 and fall on $ 3,000, 2018 low point
• CASE 3: Exceeding the intermediate resistance at $ 5,700 and technical rebound towards $ 6,500 / $ 7,000

BTC / USD chart daily data

Follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView. You can consult the history of our technical points on cryptocurrencies in click here.

This content is provided for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price swings