Bitcoin plunged after ignoring strong downside obstacles. It was trading at 30,961 at the time of writing above 30,331 today's low. BTC/USD dropped by 24.27% from Wednesday's high of 40,050. Its massive sell-off forced altcoins to drop as well. Technically, it's almost to reach strong downside obstacles.
In the last 24 hours, Bitcoin is down by 9.50% and by 18.70% in the last 7 days. After its strong sell-off, we cannot exclude a temporary rebound.
BTC/USD Dropped As Expected!
As you already know from my previous analyses, BTC/USD was expected to extend its sell-off after dropping below the median line (ML). Also, ignoring the 34,324 signaled a larger drop.
Now, it was almost to reach the descending pitchfork's lower median line (LML) and the 30,000 psychological level which are seen as downside obstacles. It challenges the weekly S1 (31,807) which represents a static resistance (support turned into resistance).
BTC/USD Outlook!
The bias remains bearish but it could be too late to sell it at this moment. A temporary rebound could bring new selling opportunities. 32,967 and 34,324 are seen as strong upside obstacles.
False breakdowns below the LML or a strong bullish pattern could announce a rebound. On the contrary, a valid breakdown could announce a further drop.
