Bitcoin was vulnerable to a move towards $40,000 as we so many times mentioned in our analysis. The inability to break above $52,000 combined with the break of the horizontal support, leads price lower.
Blue line -support (broken)
Bitcoin has broken the short-term support at $45,000 and is now challenging the December sell off lows at $41,640. As long as price is below the red downward sloping trend line, we remain pessimistic for Bitcoins future. Bulls need to break above the red resistance trend line in order to make at least a relieve bounce. Bitcoin currently has the potential of breaking below $40,000. Next key support level is at $38,000.
