With many Bitcoin bulls expecting a rally during this holiday season and a break to new all time highs before the start of 2022, the market has brought more disappointment than smiles. As we mentioned in our last analysis Bitcoin justified a pull back towards $47,000 as long as price was trading below $52,000, following the multiple rejections at that level.
Blue line -support
Black lines - Fibonacci retracements
Bitcoin is now challenging the blue upward sloping support trend line. Bulls need to defend this level. Breaking below $47,000 will increase chances of price making a new lower low below $45,000. Resistance is at $51,000. Breaking above this level will confirm that an important low is in and that price is heading at least towards $55,400. Concluding, at current levels price is sitting on top of key short-term support. Breaking below $47,000 will lead to a move close to $40,000. This is a price range where we can see Bitcoin reverse to the upside.
