Bitcoin plunged after reaching the 52,098.60 level and after registering only a false breakout above the 51,864.56 static resistance. At the moment of writing, it was traded at 47,965.63 above 46,596 today's low. Technically, the price reached a demand zone, so a new leg higher is in cards.
In the last 2 days, BTC/USD dropped by 10.56%, from 52,098.60 to 46,596. In the last 24 hours, the crypto is down by 1.60% and by 2.68% in the last 7 days. From a technical point of view, Bitcoin is trapped within a narrow range. An escape from this pattern could bring us a clear direction and great opportunities.
BTC/USD attention at supportBTC/USD closed the current H4 candle and registered a false breakdown with great separation below the 47,111 static support, under the weekly S1 (46,942.17), and through the former downtrend line.
In the short term, it could still come back down to retest the 47,111 level before trying to develop a new leg higher. A minor consolidation above the 47,111 - 46,201 support zone could announce that the downside movement is over.
BTC/USD predictionBitcoin moves sideways between 51,991 and 46,201 levels. If it trades above support, we can look for new buying opportunities. A bullish pattern in this support zone could bring new buying signals.
A larger downside movement could be activated if Bitcoin drops and closes below 46,201. This scenario could invalidate the bullish scenario. Still, as long as it stays above the support zone, it could turn to the upside. The Descending Pitchfork's upper median line (uml) stands as a potential target.