Last week Bitcoin broke below the $45,000 horizontal support and is now challenging the $40,000 level. Price has broken once again the 61.8% Fibonacci retracement and is making lower lows and lower highs. Bears are in control of the short-term trend.
Red line- resistance trend line
Bitcoin is heading now towards the 78.6% Fibonacci level around $38,000. As long as price is below the red downward sloping resistance trend line, short-term trend will be controlled by bears. Resistance is at $45,000, what was once support. Failure to hold above $38,000, will lead to a deeper decline that will eventually test $30,000 and the major low from the summer of 2021.
