Past Performance of Bitcoin
After sharp upside moves in the European and early New York sessions on April 21, Bitcoin prices plunged to close the day as an inverted hammer . The long upper wick points to strong selling pressure, unwinding gains posted in the days as prices reacted from the previous support–and now resistance–multi-week trend line . Based on the development in the daily chart , #BTC seems to have completed a retest.

Bitcoin Technical Analysis
Traders remain apprehensive at spot rates. Even after the complete reversal of April 11 losses and the close above the $42.5k level, sellers didn’t sustain prices above $42k, indicating weakness. The uptrend has been nullified following the April 21 inverted hammer and prices trending below $42.5k. Prices are pulling back from the liquidation trend line , completing a retest. Sellers might ride with the newfound trend, targeting $39.5k in what could be a bear trend confirmation of the April 11 leg down.

What to Expect from #BTC?
The reversal from April 21 highs pours cold water on bulls’ momentum. Since prices are now back within the April 11 trade range and $42.5k, the selling pressure of April 21 may spill over, possibly forcing BTC towards $40k in the short term.
Resistance level to watch out for: $42.5k
Support level to watch out for: $39.5k

Disclaimer: Opinions expressed are not investment advice. Do your research.