Price has made no real progress over the weekend. Bitcoin price continues to move sideways between $40,000 and $45,000. Support at $39,500 is key and bulls do not want to see price break below this level. If this happens we get another sell signal.
Green lines- Fibonacci retracements
Bitcoin has so far retraced 61.8% of the last leg down from $49,000 to $39,500 area. Price is below the blue downward sloping resistance trend line and as long as this is the case, price will remain vulnerable to more downside. Bulls need to break above $45,500 to get the first sign of strength. However the important bullish signal will come if and when price recaptures $50,000. If until then price breaks below $39,500, traders should be cautious as Bitcoin will be vulnerable to a move towards $35,500 and $30,000.
