Bitcoin BTC/USD testing critical levels again
- Bitcoin price down a chunky 5% on Wednesday, yearly lows being tested again.
- A breach of the $3800-500 range would likely see a high amount of selling pressure, causing a drop to test $3000 to the downside.
Bitcoin price is firmly on the back foot, danger is very much at larger with the current downside momentum, testing yearly lows. The $3800 down to $3500 price range is key, a failure to hold will see the price free-falling.
BTC/USD is down around 5% on Wednesday, having bounced at the areas of stabilization seen between 25th to 27th November. Buyers are defending this with much might, as the next major area not see until $3000.
Looking to the upside, this is very much capped by a descending trend line, that has been in play since 29th November. The resistance is tracking at $3950, a breach here could allow a wave of buying pressure to come into play.
BTC/USD 60-minute chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
