The $375 price level is continuing to show its ability to hold as support. In my previous Bitcoin technical analysis article on the 21st of January – I outlined the technical significance of this level and why every active trader should be aware of it. This pivot zone has acted as support on three separate occasions this month!
The $395 area – which held as support about three times yesterday – was broken today on heavy selling. This level also act as support on the 23rd of January, so I consider this area to be an important pivot zone now. If there is a retracement upward over the next 24h, the $395 level may now turn into resistance, and that could set the stage for further losses over the next few days.
In the event that price climbs back above $395 – another rally towards the pivot area at $405 will be very likely.
Disclaimer: This is not trading/investment advice!
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Chart source: https://www.okcoin.com
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