Short-term analysis on Bitcoin.

Bitcoin is trading below $48,000 having made another lower high at $49,553 and is now moving lower. In our last post we warned that price was expected to move lower towards $42,000. The chances still favor a move lower as price looks vulnerable to such a pull back.

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Black line -key short-term support

Red lines - Fibonacci extension targets

Bitcoin is now testing the horizontal support at the $46,500 area. Breaking below this level will produce a sell signal. If support fails to hold, I expect Bitcoin price to first reach the $45,300 level and later probably the $42.600 level. Although my medium-term expectations for Bitcoin remain bullish, in the short-term I remain bearish looking for the creation of a higher low around the $40,000 price level before continuing the up trend.

The material has been provided by InstaForex Company - www.instaforex.com

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