Bitcoin starts to drop as axpected

Bitcoin was trading in the red at 23,284 at the time of writing and it seems determined to resume its downside movement after trying to retest the immediate upside obstacles. Technically, the price action signaled exhausted buyers and a potential sell-off.

BTC/USD dropped by 7.83% from Monday's high of 25,212 to 23,237 which serves as today's low. In the last 24 hours, Bitcoin has gone down by 1.18% and by 3.89% in the last 7 days.

After breaking below the uptrend line, a temporary rebound was natural. It has failed to retest 23,615 in the last attempt, signaling strong downside pressure. I've told you in my previous analysis that BTC/USD could come back to test and retest the immediate resistance levels before resuming its downside movement.

In the short term, we cannot exclude a sideways movement. The rate could develop a distribution pattern before resuming its sell-off.

Dropping and closing below yesterday's low of 23,176 may signal more declines at least towards 22,668 and down to 22,400. A larger drop could be activated only by a valid breakdown below 22,400.