Bitcoin — Short-Term Analysis

Although the U.S. stock market did relatively okay yesterday, Bitcoin continued its bearish move. On the daily chart, BTC made another lower low and dipped below 56k for the first time since the beginning of August.

Today, the market is slightly recovering. However, so far, this doesn't look healthy. Accordingly, I would be cautious with long trades (actually, it is not the time for longs at all).

To print a reversal, Bitcoin must do the following:
* Break above the sideways channel's (previous) support line (57.5k)
* Make a higher high (58.5k)
* Break above the descending channel's upper resistance

This looks rather unlikely based on the current momentum, sentiment, and volume. As a first challenge, it will be vital to see if Bitcoin can move above 57.5k.