Bitcoin Price Analysis: Is this just a small blip?

• Bitcoin is trading 2.6% lower on Friday as sentiment is still weak.
• There is a key level to watch on the chart below. 

BTC/USD 4-Hour Chart

Bitcoin is moving lower on Friday but it has found some short term support.

The BTC/USD found support at the 2.00 Fib extension level close to 8,500.

On the topside, the area to watch for resistance is marked in red.

This red zone has been used as support and resistance in the past and if broken could indicate the move lower was just a blip.

If the price bounces off there and moves down, this could indicate we are in the 3rd wave of an Elliott structure and more pain is to come.

If this ends up being the case the 2.618% Fib extension level could be the target for the bears.

Lastly, if you monitor the volume, you can see the sell candles have much more participants. This is also a signal the bears are in control.

Additional Levels