Bitcoin failed to penetrate critical technical resistance earlier this week and is now staring at a support level of $35,500.
- Prices dropped 4.6% on Wednesday after buyers failed to push through the trendline connecting highs reached in November and January.
- The top cryptocurrency was changing hands near $36,400 at press time, representing a 1.3% drop on the day.
- The reversal lower from the bearish trendline in the wake of below-50 or bearish readings on the daily and the 4-hour chart relative strength index indicate an end of the corrective bounce and resumption of the broader downtrend.
- Support is seen at $35,500 – the horizontal line on the 4-hour chart – followed by next support level of $32,933, the low reached on Jan. 24.
- A convincing UTC close above the 2.5-month downtrend line is needed to invalidate the immediate bearish bias.