Bitcoin loses momentum ahead of $4000, still up more than 7% on day

Bitcoin staged a robust recovery on Monday and gained nearly $300, pushing the BTC/USD pair to a fresh 5-day high at $3977. As of writing, the pair was trading at $3917, adding 7.2% on the day.

There were no clear catalysts behind today's rally and the upsurge looked very similar to the one markets witnessed last Monday. Following a week with losses, bitcoin seems to have become attractive for investors who wanted to bargain shopping. 

On other news, a major real estate developer in Turkey announced that it would allow the luxury apartments in its new project to be purchased using bitcoin, supporting today's rise.  "We decided to make sales via Bitcoin, which has recently attracted the attention of Turkish investors with its recent value route, considering that we could also attract the attention of our customers who appreciate their investments like this," Erdal Daldaban, the manager of MiaVita Beytepe project in Ankara, Turkey, said in a statement, as reported by bitcoin.com.

Technical outlook

Nonetheless, the BTC/USD pair continues to trade below the critical $4000 threshold and it might need to make a daily close above that level to extend its upside. Moreover, the RSI on the daily graph remains below the 50 mark, suggesting that this rebound is technical in nature. Above $4000, the pair could face the next resistance at  $4115 (Sep. 18 high) ahead of $4380 (Sep. 12 high). On the flip side, supports align at $3650 (daily low), $3320 (100-DMA) and $3000 (psychological level).