Bitcoin made a new lower low today at $39,490 even closer to our target. Price is now again above $42,000 for the second day in a row. Current price action suggests that buyers around $40,000-$39,000 are strong. At this area we also find the 61.8% Fibonacci retracement level.

Red lines - Fibonacci extension targets

Blue line - resistance

Trend remains bearish in the short-term. Price is bouncing again from the $40,000 level and this is a positive sign as bulls show their strength. Bulls support Bitcoin around $40,000 and so far they continue to respect support. The chances for a move higher have increased. Breaking above the blue resistance trend line will signal the end of the downward move from $48,720 to $39,490. However we continue to be bearish medium-term as long as price is below $49,000.