BTC/USD pair has seen an increase in volatility over the last several days. One could also witness a false hit, happened on August 22. Closure of marginal market positions led to such a rapid movement. However, the recovery was fast, which once again has proved the strength of $3900 zone.
Technically, the situation is as follows:
$4400 resistance zone has proven strong. In case of $4400 hit and confident settling, a new rally is likely to happen.
Support zone of the $3900 zone. Despite the false hit, the support zone is still around $3900. But one should be careful since volatility is strong and short-term stop order moves might not be the best decision right now.
False hit. Study this movement carefully, it shows how the market works and why BTC price moves up or down.
The $3900-$4400 channel is likely to keep on in the coming weeks, along with buys from lower borders of the channel and sells from the upper borders. It’s a possible scenario, but on the current market, opening short positions might not be a good idea. An important factor to consider here is trading volume.
BTC-related news has been positive. The Segwit activation and fight for mining powers with BCH have led to an increasing news flow and growing popularity of Bitcoin.