In our previous Bitcoin analysis Must Read: What Just Happened To Bitcoin? Watch These Levels, we talked about the $50,458 and the $41,329 level as the two key support we were watching to see which Bitcoin will respect.
Well, the Bitcoin price followed that price prediction exactly as we saw a price bounce from that $50,458 support region pushing Bitcoin back up to the $57k price level.
However, Bitcoin is still very much in the bearish territory and right now, there are high probabilities that we might see continued selling pressure in the coming days.
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A Potential Bearish Trade Setup
The Bitcoin price is currently running into the ascending triangle pattern we just broke out from, and this might serve as a key resistance pushing the price back down.
This is what we call a breakout and retest strategy, where price breaks out from a pattern and then pulls back to retest it before resuming the move.
There is a very high probability that this might just playout for the Bitcoin price soon, providing us a high probability shorting opportunity to take advantage of.
However, if Bitcoin continues to surge higher and breaks above the $64,994 ATH, then this bearish setup becomes invalidated and we can then start looking for bullish setups.
As far as price remains below the $64,994 ATH, Bitcoin is bearish and you should be looking for only selling opportunities.
Levels To Target
The $41,329 level is a key level to target. This level has served as support for the Bitcoin price before and might do so again.
Are you still new to the idea of shorting Bitcoin? Well, you can read our complete guide on How To Short Bitcoin to learn.
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We also created a short Youtube video about the current sell-off on Bitcoin with more visual explanations on what we think is exactly going on and what might happen next!
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