Red lines- sideways price action
Green lines- sell offs
Bitcoin is trading around $16,800 in a medium-term bearish trend making lower lows and lower highs. Currently Bitcoin is found in a sideways price action where price is making no progress to the downside or the upside. After a sharp sell off price is stabilizing by moving sideways. This behaviour has been repeated several times over the past months. The pattern of lower lows and lower highs can be clearly seen. Each new sell off is smaller than the previous one. Does this mean we are close to a major bottom and reversal? We can not say with certainty. What we can say is that bulls remain weak and there has been no sign of a reversal. Bears remain in control of the trend. Resistance at $21,500 remains key as a break above this level would signal that a bigger bounce is coming and why not a full reversal.
