The price of Bitcoin plunged after reaching 42,220. Now, BTC is trading at 41,261 at the time of writing. In the short term, it has developed a strong rebound but now it has reached strong upside obstacles. BTC/USD dropped by 3.14% from today's high of 42,220 to 40,893 daily low.
In the last 24 hours, Bitcoin is down by 0.20%, and it's up by 0.24% in the last 7 days. Unfortunately, a potential new sell-off could force the altcoins to drop as well. The downside pressure remains high despite temporary rebounds.
BTC/USD Temporary Rebound?
As you can see on the H4 chart, BTC/USD registered a strong growth after failing the stay below the median line ML and after failing to retest the down channel's resistance. Now, it has found resistance above the inside sliding line (SL) of the descending pitchfork which stands as a dynamic resistance.
It has registered only a false breakout above the SL, 41,557 high, and through the R1 (41,665). Actually, it has printed a bearish engulfing which signals that the upside movement could be over.
BTC/USD Outlook!
Stying above the median line (ml) of the ascending pitchfork and making a valid breakout above the R1 (41,665) may signal an upside continuation.
Staying below the sliding line (SL) and dropping below the median line (ml) could announce more declines.
