Bitcoin is trading around $42,500 after bouncing as high as $44,367 after the $39,550 low. At that point we noted that a bounce towards $45,000 was justified and wanted, as such a bounce could form a lower high and provide momentum for the next leg lower. We continue to expect more downside for Bitcoin.
Red line -resistance trend line
Bitcoin is in a bearish short-term trend. Price is making lower lows and lower highs. As long as price is below the red resistance trend line we remain pessimistic and expect Bitcoin price to make new lower lows. Bulls need to break above $45,000 in order to hope for the creation of an important low at $39,550. Until then, bears are in control of the short-term trend.