Bitcoin sellers in control

Bitcoin plunged after failing to stabilize above the 24,676 key level. It was trading at 23,435 at the time of writing. Technically, the price action signaled exhausted buyers, so a new sell-off is in the cards. Still, we need strong confirmation before taking action.

BTC/USD dropped by 7.47% from Monday's high of 25,212 to today's low of 23,329. In the last 24 hours, Bitcoin has moved down by 1.84% and by 2.06% in the last 7 days. A new sell-off should force the altcoins to drop as well.

As you can see on the H4 chart, BTC/USD failed to stabilize above 24,676, signaling an overbought situation. Now, it has dropped below the uptrend line which represented dynamic support.

The next downside obstacle is represented by the weekly S1 (22,974). It remains to see how it will react after reaching this static support.

Testing and retesting the broken uptrend line and the 24,000 psychological level and registering false breakouts may announce more declines. Also, a valid breakdown below the S1 and a new lower low could activate a deeper drop.