This weekend has been nothing but boring in terms of price action. After a Sunday bear trap for the second time this weekend Bitcoin’s price dropped to trhe low $360 only to bounce right back up to the $370 levels. In our last technical analysis we analyzed the positive divergence which was forming between the OBV and the price. This divergence signaled major price movement and a possible trend reversal, while no major market action occurred just yet does not mean that it won’t happen any time soon.
Chart from bitcoinwisdom.com
The chart above shows the breakdown of the last support level, which was right around $375. The last drop from $375 is significant because it signals that the bears are in control since the support zone did not hold. When such technical indicators form, traders will usually short the security in question and additional sell pressure is expected. At this point it is unlikely that we will see the price climb much higher as support is barely holding.
TReano from tradingview points out an interesting idea