Bitcoin has rallied relentlessly since the 10th of February, however, the market managed to break the trend line today. Today’s sell-off was the first major retracement in two weeks. After three failed attempts at breaking above $440, price plunged all the way down to $416 today.
Not only was the trend line violated, but price closed underneath an important pivot zone. Although not very clear on the 4-hour charts, the 30-minute chart shows the technical significance of the $427 price level. This area acted as resistance three times between the 18th and the 20th. The $427 area also acted as support two times during the first sell-off that occurred on the 21st. Price is now trading underneath $427, so this level may now turn into resistance.
The $418 level is another pivot that traders should keep in mind. This level acted as support about four times between the 17th and 19th, and today’s plunge was halted right around this level. The market has respected this area as support a total of five times this month.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart source: https://www.okcoin.com
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