The bitcoin price fell to $3,550 as all top cryptos experienced losses into Sunday. At the time of writing bitcoin is down over 4 percent on the day, trading at around $3,590. The current price is more or less the price bitcoin was last Sunday if we take a look at the weekly chart.
Having been rejected by prior support yesterday and failing to close above previous high $3,680 the price crashed down to support around $3,500 area. This is the area to watch now, a bearish close below could open the door for a drop to the low $3,000’s which many traders predicted last week.
We are still trading the range marked out by notable crypto trader DonAlt last week. As he suggested back then the key support of $3,380 is the one to watch before becoming bearish and resistance at $3,700 before becoming bullish. It’s worth noting that the resistance of $3,700 was broken yesterday, but price failed to hold. Patience and waiting for the right time to enter a trade is probably the best policy at this time.
$BTC not so daily update:
Chilling in the lower part of the current trading range after having put in a few consecutive lower highs.
As long as we stay below the POC I'll most likely stay hedged.
I'm personally not interested in trading this trading range.
R: ~3700 pic.twitter.com/9Oo78Dkl8e
— DonAlt (@CryptoDonAlt) January 16, 2019
The downtrend remains intact, and we’re stuck in a daily range between $3,700 and $3,500. A breakout below $3,500 would likely lead us to test the major support at $3,150.