Bullish Correction Still Possible if Price Holds Above $3,550
The bitcoin price on Thursday plunged more than 8 percent across the Asian and European trading session, according to aggregated market data at CoinMarketCap.com.The bitcoin price has broken below its bearish pennant formation. The pennant’s dotted blue trendline represented as (B) indicates the failed support, while the upper trendline (A) is still looking strong as the session resistance.An extended breakdown action could lead bitcoin near its temporary bottom area above $3,110, forming a double bottom. Earlier, analysts have predicted that bitcoin will break below the bottom area to establish fresh lows towards $2,500. From the technical perspective, a double bottom scenario has more likelihood to reverse a trend than to extend it. Generally, the longer duration between the two bottoms would ensure more probability of a bounce back.
Similarly, a break above $3,686 would have us enter a long position towards $3,817, our upside target. A stop-loss order at $3,676, meanwhile, will protect us from potential interim bias switching.