Bitcoin Technical Analysis for 01/01/2016 – Major Battle at $433

Bitcoin appreciated tremendously during the last few months of 2015, but the trend is beginning to shift. The 4-hour chart is clearly showing that the market started to print lower-highs, and also lower-lows, towards the end of December. The trading channel is now starting to curve lower and this kind of price action is very suggestive of an impending bear market.

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For speculators, the $433 price level has become a major battle zone. This pivot has acted as support/resistance several times during the second half of December. If price breaks above $433 and trades near the $440 level for some time; $433 will most likely turn into support again.

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A failure to break above $433 will most likely result in another plunge towards the big pivot area between $405-$406. This price level was respected on multiple occasions last month, so it is of great technical significance. And sell-off will most likely stall near this range.

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Disclaimer:  This is not trading/investment advice!

Image Source: 1

Chart source: https://www.okcoin.com

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