Bitcoin showed a nice recovery on Monday and is trading at $3,591 at the time of writing. The price of the coin has increased by about 8% over the past 24 hours amid a recovery in the global cryptocurrency market, driven mainly by technical and speculative factors.
Technical analysts at Fundstrat Global Advisors believe that it is too early to say that Bitcoin has reached the bottom. Moreover, they know when bulls should abandon their long positions.
«It is too early to conclude that the long-term low will end, but it is encouraging to see that BTC is starting to respond to its next support level. We would recommend that traders use the 200-week sma (simple moving average) around $3,100 - $3,200 as a stop loss level to manage the risks associated with bulling, experts say.
This is a natural development, but it may indicate that we are facing strong resistance as we approach the $3,600 price. Once this is cleared, Bitcoin will move on to the next hurdle created by the SMA100 at $3,675.
On the other hand, the first support area is created by the confluence of the aforementioned SMA50 ($3,324), the psychological support at $3,300 and the 4-hour Bollinger Band midline ($3,378). If the price moves lower, the sell-off could gain momentum and push the price to $3,200.
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