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
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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
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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
FXStreet
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.
