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After Sudden Upswing, Bitcon In Consolidation

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Bitcoin could not sustain the momentum it enjoyed when it shot up by nearly 10 percent on a single day last week.

Since peaking at $3626 last Friday, the leading cryptocurrency by market capitalization shied away from the momentum over the week, and is back to another consolidation range below $3,600.

The price has been drifting downward, though at a marginal speed, over the course of the week.

As of writing, BTC is changing hands at $3,565 on Coinbase, having lost its value by $47, or by 1.31 percent, in the past seven days.

Facing tough resistance with prices unable to claw back to $3,600-$3,700 levels, BTC is retesting the key $3,540 support area against the US Dollar.

A break above the channel resistance and $3,600 could open the doors to the psychological hurdle of $4,000 in the near term.

Bitcoin was expected to make a quick move to the psychological resistance of $4,000, but remained direction-less near $3,600 in the last six days.

However, a look at the monthly chart says price decline was protected by the key support price of $3,540.

The journey towards dangerous low levels from its recent peak of $4060 on January 8 was stemmed on February 8, with a steady rising spree taking Bitcoin up by nearly $300 to $3643.

And it is important to hold support at this level, failing which Bitcoin will face a test of new lows, crypto analysts believe.

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