The attempt to return bitcoin to growth that could have succeeded with the flow of information from South Korea, which is moving away from the attempt to impose larger trade restrictions on bitcoin, has failed. Despite yesterday’s initial increases, the day ended in the red, which means another local support test in the price region of 12,600 USD.

Picture 1. Technical analysis, bitcoin, M30,16.01.2018

In the case of defense of the indicated support, we should witness the formation of a triple bottom in this region. The implementation of this scenario in the first place assumes a rebound at least in the vicinity of the local downward trend line.

Picture 2. Technical analysis, bitcoin, H4,16.01.2018

A possible breaktout of 12,600 USD means the negation of the triple bottom formation and the continuation of declines. Another target for bears is the key support already tested around 11300 USD.

Risk Warning: The contents of this analysis is for informational purposes only and does not constitute investment advice.

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