Bitcoin flirts with $3,700; good time to buy?

Bitcoin reversed the gains of the previous week as the sellers returned to the market after a short recovery. The first digital coin has lost 11% of its value in recent seven days, extending the November decline.

However, some market experts believe that this setup looks bullish and offers an excellent buying opportunity for those who are looking for an entry point.

“Bitcoin continues flirting with the [$4,000] level as it struggles to find its footing following the latest selloff. But given how far we fell, at this point, there is more upside than downside. That said, few things move as far and as fast as cryptocurrencies,” Jani Ziedens of the CrackedMarket blog explained.

Earlier, a co-founder of BTCChina and a board member of BTC Foundation Bobby Lee stressed that Bitcoin has a strong intrinsic value that will support it in the long run

BTC/USD is changing hands at $3,710 at the time of writing, down over 355% since this time on Wednesday. The coin is rangebound with bearish bias during early Asian hours; however, $3,700 serves as good local support for the time being. Once it is cleared, the downside may be extended towards the recent low a $3,669 and to the psychological $3,500. 

On the upside, the local resistance is created by SMA50 (1-hour) at $3,845 and followed by $3,900-$3,920 congestion zone that includes SMA100, 1-hour. It needs to be broken before we can proceed to a critical $4,000.

BTC/USD, 1-hour chart