In my previous analysis titled Follow This!, I advised that market participants create short positions by placing a stop-loss just above the downward sloping resistance level for a target of $280. Since yesterday’s $285.63, Bitcoin has plunged nearly 2 percent to an intraday low of $279.46 and is now trading at $281.01.
Now that the price has descended to the support level, will it rebound or will it pierce the support and head even lower? Let’s try to find that out with a technical analysis of the daily BTC-USD price chart.
Bitcoin Chart Structure – As the gap between the resistance and the support narrows, it becomes highly likely that a breakout will be witnessed sooner than later. Failure of Bitcoin to rise above the previous peak and repeatedly retest the support of the descending triangle may ultimately lead to a breach of the floor.
Fibonacci Retracements – The 38.2% Fibonacci retracement of $280 has once again acted as a cushion to falling Bitcoin.
Moving Average Convergence Divergence – MACD, Signal Line, and Histogram report lower readings