Bitcoin climbed as much as 38,946 today where it has found resistance. Now, it plunges after registering only a false breakout above the near-term resistance levels. BTC/USD lost 5.64% from today's high. In the short term, the pressure is high also around the FOMC.
In the short term, the price of bitcoin registered an 18.19% rebound. Technically, the price action signaled that the bounce back is over and that the BTC/USD could slip lower. Bitcoin's sell-off could force the altcoins to lose altitude as well.
BTC/USD Trading in the red!
As you can see on the h4 chart, BTC/USD registered only a false breakout with great separation above the 38,050 former high and above the weekly pivot point of 37,927.01 signaling that the swing higher is over.
I've told you in my previous analysis that BTC/USD could register only a temporary growth. Also, you knew that the 37,927.01 stands as an upside obstacle. Stying below this level may signal a potential drop towards the descending pitchfork's median line (ml).
Bitcoin Outlook!
The false breakout indicates exhausted buyers. Testing and retesting the 38,050 resistance could bring new selling opportunities. In the short term, the price of Bitcoin could come back to test and retest the median line (ml) before trying to develop a strong leg higher.
Dropping towards the previous lows could help the buyers to look for new buying opportunities. BTC/USD could extend its rebound only if it makes a valid breakout above the 38,050.
