- Bitcoin is dancing slightly in the green after stepping above $3,800.
- Bitcoin continues to face scalability hurdles due to its software problems.
The mixed red and green signals on the cryptocurrency market on Wednesday revive the hope that digital assets like Bitcoin will reverse the trend following the declines on Sunday last week. Bitcoin is dancing slightly in the green at press time and is up a subtle 0.05 after reclaiming support above $3,800. Prior to the waterfall drop, BTC/USD had recovered significantly above $4,000 and even recorded highs of $4, 187.24.
In other news, Abra CEO Bill Barhydt Bitcoin continues to face scalability hurdles due to its software problems. In addition to that, Barhydt said that the company is planning to add support for stablecoins which are essentially ERC20 tokens. He emphasized that some of the stablecoins “can represent off ramps and on ramps, a marker in the field of cryptocurrencies.”
Since the sharp drop mentioned above, Bitcoin has not been able to recover past the hurdle at $3,900. In fact, the weekly high for the asset is roughly $3,863.54. Corrections to the south have been halted by the short-term support at $3,750. The ongoing weak bullish momentum is supported by the 50-period Simple Moving Average on the hourly chart.
The 100-period SMA will limit gains marginally below $3,900 but first, the buyers must overcome the resistance at the 23.6% Fib retracement level taken between the last high at 3,187.24 and the low of $3,713.04. Further upside movement to have Bitcoin breakout out of the bullish flag pattern and trend towards $4,000 in the medium-term.
