BREAKING -- Bitcoin Drops Below Previous Low

Bitcoin is due for a pullback. Have no fear though because there may still be hope for an uptrend...

For now, the "oh shit, gotta hold it" level is $3,475. This is the corresponding low from the last major pullback on the longer charts.

However, a break from the recent low at $3,851 confirms that a shorter term down trend is in fact in the cards. Technical indicators are showing increased bear pressure as the RSI crossed below 50 and is heading lower. The MACD is well into a bearish indication.

Immediate support is at $3,827 with a lower support of $3,748. The target is $3,600 which will be the test of an uptrend. If $3,600 can hold and BTC can make higher highs and higher lows, an uptrend is likely as this will be formed above the trend low of $3,475. A break of $3,600 will surely see a test of the $3,475 support which has already been supported twice.

Bitcoin volumes remain steady despite news out of China to stop trading. I anticipate that a selloff might ensue in the near future, so these support levels will become critical tests.

Once again we are quickly approaching the downtrend resistance line. Signs aren't shaping up to be too good for looking to blast through this trend line, and I suspect it will still remain effective.