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Bitcoin Price Analysis: Bulls meet resistance, bears on guard

  • BTC/USD has started the week off with a bid, rallying near to 2% on the day so far. 
  • However, until the bulls have conquered the near term resistance, the downside is still a scenario worth preparing for. 

In a follow on from last week's analysis, with relative content worth noting, the following is an update with the same bearish outlook on the daily and 4-hour time frame:

Daily chart

The daily chart has extended through a 61.8% Fibonacci retracement which makes the likelihood of a downside extension somewhat less likely.

However, a daily close below the resistance structure leaves the prospects of the downside more probable. 

The correction, at least, has been slow and steady which is ideal. 

4-hour chart

The price from here has some work to do, but all will be to play for on a break and close below the newly formed support structure. 

On a restest of that structure, which would then be acting as resistance and expected to hold, bears can seek to place their entries for a high probability trade set-up targeting a lower low in a new bearish impulse. 

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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