FX.co ★ Bitcoin bulls fight back but are they strong enough to push higher?

Bitcoin has managed to fall as low as $46,615 breaking below April low. Bulls have fought back since then and price is again above $50,000. Price is holding above the key support trend line now found at $48,180. Failure to hold above this level will lead price to a move even lower than $46,000, most probably towards $40,000.

Blue lines - Fibonacci retracement

I expect Bitcoin to continue its correction phase and move lower at least towards the 38% Fibonacci retracement found just above $40,000. We could see another short-term bounce, but as long as price is below $59,550 the chances favor bears for another sell off. Price has not really moved the last four months as price is mostly moving sideways between $44,000-$60,000. Price has formed a lower high on May 10th and a lower low a few days later. These are signs of vulnerability and that is why I believe more downside should be expected.