A few days back we warned traders that Bitcoin was testing an important horizontal support at $29,000 and in the past we saw price bounce strongly off this level. The same happened this time and we also noted the short-term bullish signal once Bitcoin price broke above the short-term downward sloping trend line resistance.
Red lines - resistance trend lines
Bitcoin has already reached the next important resistance trend line at $39,700. Price has made a triple bottom at $29,000 and is showing reversal signs. Next resistance is at $41,000-$42,000. A rejection around $40,000 will be a bearish sign and will increase chances of breaking below the triple bottom and reaching $25,000-$20,000. Bulls need to see price start making higher highs and higher lows and not break below $29,000 again, in order to hope to see new all time highs over the next year.
The material has been provided by InstaForex Company - www.instaforex.com