Bitcoin Technical Analysis for 02/03/2016 – Pressure is Building Up!

Bitcoin experienced a brief one-day surge to a high $427.37 on the 20th of January, but price has been trading lower since that day. The 4-hour chart shows that the trend line that has formed since the 20th is still very much intact. Price has traded lower every time it has touched that line!

The market is currently stuck in a range between resistance at $384 and support at $363. The $384 is actually a fairly important technical pivot zone. This area supported price on two occasions before the big spike on the 20th. When the market broke underneath $384 on the 27th – this level then turned into resistance.

There is also a descending triangle formation currently forming. The market has started to print lower highs since the end of January. This indicates that pressure is building in the market as price is compressed against the support area at $363. These sort of formations usually resolve themselves with a very violent break!

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Disclaimer:  This is not trading/investment advice!

Image Source: 1

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

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Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

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