Pumping of market’s downward potential continues in the shape of low-speed expansion of Bollinger bands on background of very active trending ADX. Testing of the middle Bollinger band ($3537 for a coin) is still possible, which can be regarded as the most perspective zone for mid-term short-trades.
We note two local resistance levels and each of them has a potential to cut upward correction. These are 3438 and 3490 (middle and upper Bollinger band). Lower Bollinger band was broken earlier, that is a sign of decline continuation. Therefore we are unlikely to see bitcoin above the mentioned handles today.
Strong local pivot-level $3438 can get under pressure intraday, that is indicated by ADX bullish pressure. Thus we can’t rule out a break towards 3490 (watch the red arrow).
Main scenario: Growth towards 3490 and then decline in direction 3400-3410.
Alternative scenario: Touch of the resistance 3438 and start of new downward wave afterwards.
Looking for short-signals at the 3438 and 3490 levels.