- Bitcoin price after trading as high as 320.00 moved lower and broke an important support area.
- The recent break in Bitcoin is calling for a trend change, which is likely to call for more losses.
Bitcoin price looks like heading lower, as sellers managed to clear a couple of important support levels.
There was a solid upside reaction recently in the Bitcoin price, but once the price tested 320.00 there was a downside reaction noted. The price declined heavily and shredded more than 10% gains to trade below 280.00. However, there is one more major support area building on the downside around 275.00, which if breached more losses are likely. There are many negative signals forming on the 4-hours chart, which is pointing towards more declines in the near term.
100 MA as a support
As mentioned there was a major downside reaction this past week, which called for a trend change. There was a bullish trend line formed on the 4-hours chart, which was breached to open the doors for more losses. The price even managed to clear the 100 simple moving average, but there was not satisfactory close below it. The price is range trading around the stated MA, and it looks like there might be a nasty move down if sellers manage to take control in the near term. On the downside, the recent low of 272.00 is seen as a support. A break below it could take the price towards the next support around 260.00.
On the upside, the broken trend line might be seen as a resistance area, which is coinciding with the 23.6% Fib retracement level of the last drop from 318.00.
Intraday Support Level – 272.00
Intraday Resistance Level – 290.00
In short, selling rallies might be a good idea moving ahead.
Charts courtesy of Trading View