BTC did sold off from the key resistance line (upper diagonal of the channel). BTC did test the level of $4.920 and there is potential for more downside and potential test of $4.650.
Red lines -upward overbought channel
White horizontal line – key support trendline
BTC sold off strongly and it stopped at the lower diagonal of the channel at $5.100. Anyway, since the momentum is on the downside and that buying looks risky, we advise you to watch for potential selling opportunities if you see potential bearish flag in creation. Bearish flag would confirm downward continuation and potential test of $4.650. Resistance is seen at the price of $5.491 and $5.628.
The material has been provided by InstaForex Company - www.instaforex.com