At the time of writing, bitcoin was dropping after failing to resume its upwards movement. It was traded at 45,501. Actually, it moved somehow sideways in the short term. Technically, it has shown some overbought signals, so a temporary decline is natural.
The outlook is still bullish, so we don't have to worry too much. BTC/USD could decline to retest some support levels before jumping higher. The current decline could help us to catch a new upward movement.
Bitcoin has dropped by around 1.82% in the last 24 hours, losing $843.38, but it's still up by 0.06% in the last 7 days. The trading volume decreased by 2.35% in the last 24 hours, while its market cap dropped by 1.87%.
BTC/USD Temporary Decline
Bitcoin failed to approach and reach the channel's upside line. Now it may come back down towards the uptrend line. Also, the weekly S1 (43,843.07) is seen as a downside target.
Its incapacity to stabilize above the weekly pivot point (46,026.27) signaled strong selling pressure in the short term. This bearish momentum could be only a temporary one. The bias is still bullish as long as bitcoin stays above the uptrend line.
Bitcoin could resume its growth within the ascending channel's body. A bullish pattern around the S1 or printed on the uptrend line could signal a new leg higher. Also, failing to reach the support levels and coming back above the weekly pivot point 46,026.27 may signal upside continuation.
Only a valid breakdown below the uptrend line could invalidate the upside scenario and could signal a broader decline.
Outlook
BTC/USD could resume its decline if it stabilizes under the pivot point and if it makes a new lower low to drop and close below 45,260.01. The confluence area formed at the intersection between the uptrend line with the weekly S1 (43,843.07) could attract the price.
A false breakout with great separation, a pin bar, or a major bullish engulfing pattern printed on these support levels could bring a new long opportunity.
