Over the last 48 hours, Bitcoin price has broken support at $11,000 mentioned in my previous analysis and has since dropped back to support around $10,100. High selling volume indicates further downside over the coming days.
Bitcoin 2-Hour Price Analysis
On the 2 hour chart for XBT/USD, we can see support above $11,000 has been broken convincingly with a clear increase in selling momentum. Bears are in control of the short-term price action as price levels approach key support between $10,170, and $9,890. 50 MA and 200 EMA have yet to cross down over each other meaning a bounce could happen beforehand resulting in a continuation of the bullish short-term trend.
Overhead resistance around $11,100 stemming from the yearly high around $14,000 is the main resistance point to look out for if price levels do proceed to bounce. If this resistance point is broken price levels will likely re-test the yearly high.
There’s a chance BTC will make a new lower low over the coming days and weeks to put fear into long traders before the real breakout of the overhead resistance mentioned. It’s likely $8,100 will be the lower low region. 0.5 Fibonacci level at $9,400 is also a key support area to look out for however, it’s much more likely that Bitcoin price will create a lower low.
Bitcoin 30-Minute Price Analysis
On the 30 minute chart for XBT/USD, we can see the small rising support level around $11,100 that has recently broken. This break-down was met with clear selling pressure indicating bulls are no longer in control of the short-term trend.
POC has yet to move down and still sits at the previous asymmetrical triangle break-down point at $11,700.