The weekend brought pain for Bitcoin, but that was always on the cards. My Friday’s Bitcoin price technical analysis Palpable Strain concluded on a bearish note saying that a close below $286 could bring in further decline, and as can be seen, the cryptocurrency did slump intraday to $276.57 before taking support from near the previous consolidation level of $275.
Bitcoin is currently trading at $281.26.
Now, the important question that must concern the trading community is: Is this relief from the support level for real or is it a trap? This analysis will aim to provide some answers.
Bitcoin Chart Structure – The recent decline from $298 to $276 diminishes the probability of an immediate higher top. A careful observation of the above-presented daily BTC-USD price chart reveals that Bitcoin is in a descending triangle – a bearish technical chart pattern which successfully matures 60-70% of the time. The Resistance has been marked by the downward sloping red line while the Support is horizontal.
Fibonacci Retracements –