Bitcoin dropped in the short term and now it is trading at the 21,860 level at the time of writing. BTC/USD dropped by 11.18% from last week's high of 24,280 to 21,564 today's low. Still, the retreat could be only a temporary one.
In the last 24 hours, BTC/USD is down by 4.08% but it's still up by 1.07% in the last 7 days. The current drop forced the altcoins to drop as well.
BTC/USD Flag Pattern!
If you remember, I've told you that the false breakout above the up channel's upside line may announce a new sell-off. The BTC/USD dropped within a minor flag formation. This pattern could announce an upside continuation.
In the short term, the bias remains bullish as long as it stays above the uptrend line. Now, it has retested the 21,708 which represents a downside obstacle as well. The immediate resistance is represented by 22,401.
BTC/USD Forecast!
A valid breakout above the flag's upside line may signal that the retreat ended and that the BTC/USD could try to come back higher at least until the 24,280 key resistance.
Also, retesting the uptrend line may announce a new bullish momentum. Only dropping and stabilizing below the uptrend line could validate more declines.
