FX.co ★ Bitcoin vulnerable to drop towards 43,000 again

BTC/USD seems undecided in the short term. It is traded at 46,699 level below 47,419.95 today's high. The pressure is still high despite the temporary rebound. It is located below strong resistance levels, so it is premature to talk about potential growth.

In the short term, we cannot exclude a temporary drop towards the immediate support levels. Bitcoin could come back down to test and retest the near-term downside obstacles again. BTC/USD is up by 0.36% in the last 24h but it is in the red in the last 7 days being down by 5.50%.

The cryptocurrency has escaped from a Rising Wedge pattern, so the bears could take the lead anytime.

BTC/USD Under Massive Pressure

Its failure to stabilize above the sixth warning line (wl6) signaled that that upside movement could be over. The support is seen at the 43,000 level which is seen as a key level. A larger drop could be activated by a new lower low if BTC/USD drops and stabilizes under 42,900.

An upside continuation will be signaled by a valid breakout through the sixth warning line (wl6). Bitcoin stands in a neutral zone, anything could happen. Technically, its false breakdowns with great separation below the S2 (44,706) and below the 43,000 psychological level signaled that the bulls are still strong around these levels.

Outlook

A new leg higher could be announced only by a valid breakout through the warning line (wl6). A further drop could be invalidated by such a breakout.

Technically, a new lower low dropping and stabilizing below the 43,000 could open the door for a deeper drop.