Bitcoin has broken a key short-term support trend line. Bitcoin has most probably completed its upward move from the lows at $29,000 to the recent highs of $50,435. Price is now is in a corrective phase and a deep pull back is expected to be seen over the coming days. Price has given us a short-term sign of weakness by breaking the upward sloping red trend line.
Green line -support from recent lows
Yellow line - expected path
Bitcoin is expected to continue forming lower lows and lower highs. Price is expected to make a pull back at least towards the latest important low at $43,800. although we believe that more downside should be expected. Resistance is at the red trend line which was once support. Breaking below the green rectangle will confirm that we are heading lower. Price action supports the scenario of an at least short-term trend reversal.
