Green lines- Fibonacci retracements
Red downward sloping trend line- resistance
Bitcoin bounced higher today towards $16,550 but price got rejected when it reached the red downward sloping resistance trend line. After the FTX scandal sell off, Bitcoin bulls seem unable to stage a meaningful bounce higher. Price has managed to move mostly sideways in a trading range forming lower highs. Today's rejection at the red trend line confirms the importance of this line. A break above $16,550 would be an important sign of strength and we should then expect prices to move even higher towards the 38% Fibonacci retracement. As long as price remains below the red trend line, Bitcoin will remain vulnerable to another break down. Support remains key at $15,500.