On Tuesday we saw solid gains in the cryptocurrency market. Ethereum deserves special attention as it has reached new historical highs. Nevertheless, today's session brings a sudden twist, with Ethereum losing over 9% and Bitcoin is trading 7% lower. In the previous post, we discussed the technical situation on the ETH market, now let's focus on BTC.
Looking from a technical point of view at the Bitcoin chart, upward momentum has been slowing down for some time. A dynamic downward correction appeared shortly after the first break above the round $40 000 level. Another attempt of breaking above this psychological level turned out to be unsuccessful. Currently a chance for a deeper correction occured. The nearest support is provided by an upward trend line. If sellers will manage to break below, the downward move may even reach the horizontal zone at $28,000. On the other hand, a break above the downward trend line could launch another upward impulse towards $40,000 level.
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Bitcoin interval H4. Source: xStation5
