CoinDesk Markets analyst Omkar Godbole believes that the support at $3700 showed themselves well, but formed a bear flag on the hourly chart says about the threat of further decline. If daily candle will close below $3714, then the trend changes to the downside will become an official, he says.

In the next few hours the price of bitcoin is not to fall below $3764 that would confirm the implementation of the bear flag. Godbole noted that the bulls still have a chance to demonstrate the recovery but on lower time frames the probability of becoming more.

On 4-hour chart moving average with a parameter of 50 crossed the moving average with setting of 200, which is a bearish pattern. While the RSI is stuck around 50-30, leaving plenty of room to the downside.

If on the daily chart the candle closes below $3714, next support level will be $3531.

We will remind, on Sunday the number of short positions on bitcoin at Bitfinex team has reached an 11-month low.

At 13:00 UTC the number of shorts has recovered somewhat, and the number of long positions slowly falling. The ratio of long positions to short is of 1.41.

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