Today we use the Bitcoin indicator in order to identify key support and resistance levels for Bitcoin in the short-term. In our previous analysis we noted the importance of the resistance area around $36,600 and $38,600 and for bulls to regain control of the trend, these two levels must be broken first.
The recent rejection and reversal from the $36,600 resistance area has led to a pull back towards the 4 hour Kumo (cloud) support at $32,500. As long as price is above this level, bulls will still have hopes for a move higher. Bears on the other hand will need to break below $32,500 in order to regain control of the short-term trend. Bulls do not have an easy task. Both the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator) are above current market price. This is a sign of weakness. Both are important short-term resistance. The tenkan-sen is at $33,500 and the kijun-sen at $34,500. Bulls need to push price above these two indicators in order to hope for a move higher. The short-term picture remains unclear. Staying above the 4 hour cloud will be key for the short-term trend.
