Bitcoin Goes Below And Above $4,000 Again: What’s Causing This Fluctuation?

The latest Bitcoin news show that Bitcoin (BTC) is now under the $4,000 threshold, disappointing many after its bullish run which triggered many other altcoins to surge. The price of BTC traded to a new weekly high above $4,060 before falling sharply against the US Dollar and going below $4,000.

Currently, the trend is affecting every altcoin too. Ever since the price broke the key $3,960 support level and tested the $4,000 support levels, Bitcoin looked good – but things changed and a short-term bearish trend line formed with a resistance near $4,015 on the hourly chard of the BTC/USD pair.

According to analysts, it was the next key support for Bitcoin at $3,875 that prevented further declines. After a swing low was formed at $3,872 – the price bounced back sharply. The 23.6% Fibonacci retracement level fell from $4,065 to $3,872 and BTC rebounded above the $3,950 resistance level.

At the moment, Bitcoin has managed to go over $4,000 again – but is very unstable. The current price that BTC is holding onto is $4,034. The main resistance is now near $4,000 and the 61.8% Fibonacci retracement level proves this instability.

Looking at the chart, Buyers might now find it difficult to gain strength above the $4,000 and $4,020 levels . If there are hurdles in the future, there could definitely be another bearish reaction that could move Bitcoin back to the $3,900 waters.

The current technical indicators are as following:

• Hourly MACD – The MACD is slowly moving in the bullish zone, with a positive bias.
• Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher, but it is still well below the 50 level.
• Major Support Levels – $3,950 followed by $3,920.
• Major Resistance Levels – $4,000, $4,020 and $4,060

According to a prominent analyst, Bitcoin has a massive potential to surge significantly higher, even to $400k in the future. Naeem Aslam, who is a popular crypto trader, has yesterday explained that the lack of buying pressure above $4,000 is likely to lead BTC to a price of $3,500 which may be reached soon if the bulls are unable to keep BTC stable above $4,000.

It seems like Rager is right. However, his more controversial statement was aimed at Bitcoin’s future and the $400k price level which according to him, is definitely manageable in the future – and is not a “fool’s paradise” as he stated.