Bitcoin price continued falling yesterday proving how the bears are now taking over the market. With a continuation of the downtrend, $200 support level is not far away.
Bitcoin price fell yesterday from around $232 to $217 at the time of writing of this article. The $230 level acted yesterday as a resistance level that resisted the attempt at revering the bearish trend. By studying the 1 hour Bitfinex (BTC/USD) chart from tradingview.com (look at the below chart), we can observe that bitcoin price has been between the 50% and 62% levels as per the Fibonacci retracements we plotted on the charts during yesterday’s analysis. However, for the first time since the beginning of the week, bitcoin price dropped below the 62% Fibonacci retracement level today.
By viewing the 1 day Bitfinex (BTC/USD) chart and plotting the MACD on it (look at the below chart), we can notice that the blue MACD trend line has now met the red signal line. However, earlier today the red signal line was travelling above the MACD blue trend line, which is in favor of continuation of the bearish wave. The bearish wave is expected to reverse when we see the MACD blue trend line crossing above the red signal line.
The bearish wave seems to be continuing and bitcoin price is likely to reach the $200 support level. Keep an eye on signals of an upcoming bullish trend as we discussed on our analysis on 29/1/2015.
Charts from Bitfinex