Blue line- support trend line

Black line- resistance trend line (broken)

Green lines- Fibonacci retracements

Bitcoin has broken the short-term resistance trend line at $17,200. Price has provided a new bullish signal and we are now expecting to see a test of the 38% Fibonacci retracement at $17,800. Bitcoin hasn't seen this price level since November 10th. The 38% Fibonacci retracement is the first important Fibonacci resistance. A break above this level would be a bullish sign that could lead to a bigger bounce towards the 61.8% retracement at $19,200. Support is found at $17,00 and as long as price is above this level, bulls will remain in control of the short-term trend. Bulls do not want to see a long upper tail candlestick pattern. They need to keep price above $17,200 and if the $17,800 level is reached, they will need to stay above it. The RSI is making new short-term higher highs, implying that the bullish momentum is strong.