Bitcoin resumed its sell-off after failing to stabilize above the $50,000 psychological level. The bias is bearish, so the price of Bitcoin could resume its sell-off after ending the current rebound.
The price action has signaled that BTC/USD could drop deeper. Still, we need confirmation as the rate hovers above a critical support area. Bitcoin could come back to test and retest the immediate resistance levels before going down.
BTC/USD Bounced Back!
BTC/USD plunged after stabilizing below the descending pitchfork's median line (ml). I've told you in the last week that Bitcoin could increase in the short term only if it jumps and closes above 51,569 former high.
The 43,016 - 41,986.37 area is seen as a strong support zone. The price has bounced back after reaching this area. As you can see, the downside 50% Fibonacci line represents dynamic support, the price has started to increase from below it in the past.
The breakdown below 50,305 signaled strong sellers in the short term. BTCUSD could come to test and retest this level in the short term.
Bitcoin Outlook!
Dropping and stabilizing below 41,986.37 could really confirm a larger decline far below 40,000 psychological level. Only a major reversal pattern above 43,016 - 41,986 area could announce a new swing higher.
A minor sideways movement followed by a new lower low could bring a new selling opportunity.
