FX.co ★ Bitcoin Decline Expected!

Bitcoin shows exhausted signals in the short term. Its drop under the immediate uptrend line signals that BTC/USD could develop a corrective phase. Technically, the price was somehow expected to decline after failing to approach and reach the 61,788 all-time high.

You should know that Bitcoin's potential drop may bring sharp declines on altcoins as well. A corrective phase on BTC/USD could be natural and normal after the major upwards movement.

The current decline, retreat, could help the buyers go long on Bitcoin again. Most likely we'll have a great buying opportunity after this drop.

BTC/USD Correction Phase Signaled

BTC/USD plunged through the uptrend line and below 53,221 static support after a new rejection from the descending pitchfork's upper median line (uml). The price increased a little to test the Pivot Point (57,045) and the upper median line (uml) before dropping deeper.

Technically, the price was expected to decline after several false breakouts through the upper median line (uml). The current breakdown through the uptrend line and below 53,221 triangle's support announces more declines ahead.

It is trapped within a minor down channel between the upper median line (uml) and the upside 50% Fibonacci line, so it could move and approach fresh new lows as long as it stays inside of this pattern.

Bitcoin may register a sharp drop, sell-off if it drops and stabilizes under the 50% Fibonacci line, and below the S2 (49,685). This scenario could lead the price towards the median line (ml) or lower to 41,986.

Bitcoin Forecast!

The current breakdown through S1, 53,221, and below the uptrend line represents a selling opportunity with the first target at S2 (49,685).