Bitcoin Bounces Off 200-MA

Yesterday we highlighted two levels for Bitcoin and today, it tested the lower band but bounced back…rocketing off the 200-day SMA.  Yet even with today’s recovery, BTC  is moving inside a parallel bearish channel as shown in the chart. Though it broke below the lower band, we still don’t have confirmation for the downtrend. As long as Bitcoin holds the $46,000 level there is scope for a stronger reversal. The next support for Bitcoin, besides $46,000, is the trend line below at $43,000 and then at $42,000 at the bottom of December 4. The local resistance for Bitcoin is EMA 100, the above shaded area.