Bitcoin this past week was rejected for the third time once it reached the important resistance trend line near $38,000-$39,000. This rejection confirms the importance of the trend line resistance and also confirms that bulls are still not strong enough. This could lead to a decline to new lows towards $25,000 if support fails to hold.
Red line - resistance
Red rectangles - rejections
Bitcoin is making lower highs. Price has resistance at $37,500-$38,000 and as long as price is below this level, we expect another sell off to push price lower towards $25,000-$15,000. Price has been mostly moving sideways for the last month and the lower highs is a sign of weakness as bulls are getting weaker and weaker. Support is found at $34,000-$33,000 and breaking below this level will confirm that the next sell off is coming. If this consolidation breaks to the downside, Bitcoin should fall between $25,000 and $15,000. If bulls manage to recapture the resistance area around $38,000, then a bounce towards $45,000-$50,000 is very possible.
