Bitcoin Technical Analysis: BTC/USD is heading towards a catastrophic daily closure below vital ascending trend line

Bitcoin sees large volatility on Thursday, smashed by the bears, down over 5%.
BTC/USD heading towards a big daily closure below vital ascending trend line.

Ken Chigbo Independent Analyst

BTC/USD 15-minute chart

After the deep fall the early part of Thursday, price action is consolidating, but not out of danger yet.

Spot rate: 3775.16

Relative change: -5.40%

High: 4034.23

Low: 3756.2

Trend: Neutral

Support 1: 3961.93, daily pivot point support.

Support 2: 3921.56, daily pivot point support.

Support 3: 3880.76, daily pivot point support.

Resistance 1: 4043.09, daily pivot point resistance.

Resistance 2: 4083.89, daily pivot point resistance.

Resistance 3: 4124.25, daily pivot point resistance.

BTC/USD 4-hour chart

Price action has initially been ranging between 6-10 December, which made it vulnerable to an explosive move, given the mentioned price behavior.

BTC/USD daily chart

An ascending trend line that has been running since 15th December, has seen the current daily candle breach this. A closure below could be catastrophic.

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.

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