Bitcoin’s (BTC) six days in the doldrums has weakened the bull case in the short term, leaving a target of $3,700 for a resumed rally.
The leading cryptocurrency by market capitalization was expected to make a quick move to the psychological resistance of $4,000, having witnessed a falling wedge breakout last Friday on the back of strong volumes.
BTC, however, has remained directionless near $3,600 in the last six days and is currently trading largely unchanged on the day at $3,570 on Bitstamp.
So weak has been the follow through to the wedge breakout that prices have failed to challenge even the highs above $3,700 seen last Friday. The immediate outlook, therefore, is neutral and $3,711 (Feb. 8 high) is the new level to beat for the bulls.
A convincing move above that resistance would put the focus back on the high volume falling wedge breakout and open the doors for a stronger corrective rally.