We’re holding on to the view that bitcoin’s price actions from 40000 represents the third leg of the corrective pattern from 41964.0. This is affirmed by the fact that corrective recovery from 34500 to 37936 was limit by the channel support turned resistance. Focus is now back on 34500 support. Break there will further confirm our view and target 30635 support next. Still, even in this case, we’re not expecting and firm break of 30k handle. Meanwhile, break of 37936 resistance will dampen this view and bring strong rebound, probably through 40000 to retest 41964 high.
