Bitcoin has to recover above $5,000, or else!

Bitcoin is hovering around $3,6000.
Mark Dow says the coin needs to recover above $5,000 as soon as possible.

BTC/USD is moving to and fro around $3,600 handle. The coin resumed the decline after a short period of consolidation and touched $3,567 during early Asian hours. Low trading activity amid the holiday season makes the cryptocurrency market even more volatile and unpredictable.

Meanwhile, the former IMF economist Mark Dow said that the bulls need to regain $5,000-$6,000 areas to mitigate the immediate pressure and improve the technical picture.

"Still a beautiful chart. If bitcoin can't bounce to at least 5k-6k soon, it's a really bad sign for the cyberbulls. And if it breaks down thru the yellow line at any point, even the HODLers need to GTFO," Dow wrote in his Twitter account.

His "yellow line in the sand" is created by weekly SMA200, currently at $3,160.

Bitcoin's technical picture

On the 4-hour chart, Bitcoin slipped under SMA100, which is an ominous sign for the short-term bulls. The sell-off may be extended towards $3,500 guarded by the previous month low. A sustainable movement lower will bring $3,300 into focus.

On the upside, we need to see a recovery at least above SMA200 (4-hour) at $3,750. Once this barrier is out of the way, the upside momentum may gain traction and take the price towards congestion zone $3,800 and SMA50 (4-hour) at $3,872.

Meanwhile, the dead cross-coupled with flat RSI bodes no good for BTC, signaling that more selling may be in store during the day.

BTC/USD, 4-hour chart

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