Bitcoin drops further and it could hit a strong support zone soon. The sellers are still very strong, the cryptocurrency failed to validate a potential upwards movement and now it turns back to the demand zone.
BTC/USD is very heavy right now, so you should stay away from the market for now. Selling is risky here as the price is trading lower. At the same time, buying is risky as the price could drop below the major support zone.
BTC/USD is almost to hit the major support zone!
The price has retested the broken 150% Fibonacci line and now it drops further. The next target is at the weekly S2 (30,721.07). Technically, it could hit also 30,066 and the first warning line (WL1) of the ascending pitchfork.
We have a strong confluence area at the intersection between these downside obstacles. A false breakdown through this confluence zone indicates a massive drop. On the other hand, a false breakdown with great separation or a major bullish engulfing could represent a bullish signal.
Forecast!
A bullish pattern (pin bar, bullish engulfing) printed on the support levels could announce a new leg higher.
