Bitcoin stands at 55,234 level and it could extend its decline after failing to stabilize above the near-term obstacles. I've told you yesterday that BTC/USD may drop further after retesting a near-term obstacle.
Technically, BTC/USD could slip lower trying to capture more bullish energy before resuming the major uptrend. The outlook is bullish, so the current drop may be only a temporary and a natural one after the last swing higher.
BTC/USD Attracted By A Confluence Area!
BTC/USD rebounded and retested the Pivot Point (56,692) and now it could approach the S1 (51,609) and the uptrend line. The bearish engulfing printed right on the pivot point indicates a selling pressure in the short term and that the retreat may resume.
The price failed to come back towards the descending pitchfork's upper median line (uml) indicating a deeper drop. The upside scenario remains intact as long as BTC/USD is traded within the up channel's body, above the uptrend line.
Forecast & Tips!
Today's bearish engulfing signals further drop in the short term. The S1 (51,609) and the uptrend line are seen as immediate downside obstacles, support levels. A larger decline, a bearish reversal, could be signaled only by a valid breakdown through the uptrend line.
A buying opportunity will be signaled by a reversal pattern, false breakdown through the uptrend line, or by a valid breakout above the descending pitchfork's upper median line (uml).
