Bitcoin has once again tested the $3,500 level and this time resistance has held up.

We are now pulling back down lower and price has made another lower high. This is clearly bearish price action and as I said yesterday, I fully expect to see us continue to break down.

We saw a modest bounce yesterday as we moved back to that level, but we didn’t really even test the $3,500 in any meaningful way. Which to me is another sign of weakness.

Currently, price is back at $3,386 as we hone in on the lows.

Bitcoin Technicals

As it stands, support at $3,000 is my focus as I said yesterday and I fully expect a flush into that level.

The lows currently sit around $3,200 and we pushing there slowly but surely.

Any bounce at the moment is really a good time to add to a short. Volatility is creeping down a bit and that can often have the effect of almost coiling up the price action which leads to some strong breakouts at times.