Facing resistance at descending line, as mentioned in yesterday’s analysis: “It’s likely that we see a correction or consolidation. We haven’t had such since $10,300”. Bitcoin had so far failed to break up the descending line. As far as we see now, support level at $10,800 holds at the moment, but it can change quickly. What we did notice among recent red candles is that they were followed a very high trading volume, which is a bear sign. Next strong support lies at $10,000-10,300 zone – the bottom of the tunnel’s up-trend line. Breaking down the tunnel will send us back to $9,400 and then $9,000.
You should always consider both scenarios when analyzing any chart: On the bull side – breaking up the descending line will send us to resistance at $12,000, $13,000 and longer target at $17,000.
BTC/USD BitFinex 4 hours chart