Technical Analysis: Bitcoin's Big Test For The Bulls

Bitcoin broke its key pivot line at $63,500. As long as Bitcoin remained above this level, the bias was bullish in the near-term. Now that it is below, the bias is bearish in the near-term. The downside support is at $57,000 and then $54,000. Should the pivot line be recaptured, the upside is $70,000.

In the near-term, technical traders will remain bearish, especially as risk assets like stocks are selling hard. However, as long as the $54,000 level holds, the long-term bias is very bullish.

The long-term being bullish is because of the bigger parallel channel on the chart. This is known as a bull flag. It signals that at some point in the future, as long as the price stays within the parallel, upside will be likely.

Near-Term: Bearish

Long-Term: Bullish

Note the chart above to see the levels.