FX.co ★ Short-term technical market conditions favor Bitcoin to move lower.

Bitcoin is in a bearish short-term trend. Price is making lower lows and lower highs. Recently we got a bearish signal once price broke below the $38,000 level. Bitcoin has reached the $30,000 key horizontal support level that was tested back in 2021.

Green line - horizontal support

Black lines -Fibonacci retracements

Bitcoin has so far retraced 61.8% of the entire rise from the 2021 lows to the 2022 all time highs. If price falls below the Fibonacci level and the horizontal support, we should expect Bitcoin to continue its downward trend towards $19,000 where we find the 78.6% Fibonacci retracement. A short-term bounce is justified, however the chances of breaking below $30,000 and moving lower remain high.