Nigel Frith

from bitcoinist.com On the 4-Hour chart we can see that bitcoin price $7872.37 +0.60% is tracking faithfully inside a downtrending channel between two strong trend lines (white dashed lines). Within this time frame, bulls have so far failed to successfully test the downtrending resistance on 3 occasions – with the asset making consecutively lower lows after each attempt. This shows that bearish traders are beginning to take back control of BTC/USD, and are subsequently forcing bullish traders to find support at increasingly lower levels. Over the next few candles however, we should expect to see some pushback from BTC buyers as the price action retraces back to a strong uptrending support level (yellow line). This particular support has caught the lower lows twice for BTC and allowed bullish traders to launch new upside recoveries each time. How bullish traders react at this critical moment will give us a good indication of the current market sentiment, and whether we are likely to see BTC rise back above $8,000, or continue grinding down.