Bitcoin Price Analysis Jan.11: BTC Tests a Critical Support Area
Following the negative sentiment which started yesterday, we’ve seen Bitcoin continue down to re-test the critical support at $3600. As we mentioned, the sharp decline could be anticipated, by looking at the number of shorts vs longs. What led to a long-squeeze.
It’s incredible how gains of two weeks were gone in just 10 hours, as said before: Bulls Walk Up the Stairs-Bears Jump Out the Window.
So far it seems that a correction is needed, and there is a large demand around this level. However, the situation is very fragile.
Looking at the 1-day & 4-hour charts
BTC/USD BitStamp 4-Hour chart
BTC/USD BitStamp 1-Day chart