Bitcoin hit a high of $382.40 yesterday, but the outlook has changed considerable over the past 24h. Price has now broken underneath $369! Why is this area important? The $369 price level is an established pivot zone. The market reacted quite strongly to this level on the 26th, when price staged a very rapid reversal once it high $369. The area also acted as support yesterday, so this level is of technical significance. Seeing as the market is now approaching this area from underneath, it seem likely that this level may now act as resistance again.
If the market uses $369 as resistance and continues to drop over the next few days, the $353 pivot area may come into play again. The $369 area has acted as support about four times in the past few days, so I wouldn’t be surprised if the market respects this pivot area again. A break of either of these two pivot zones will signal which way the market will be trending in the near future, so keep an eye on these areas.
Disclaimer: This is not trading/investment advice!
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Chart source: https://www.okcoin.com
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