FX.co ★ Bitcoin downside could be over soon

Bitcoin has started to grow again after finding strong support. The price turned to the upside but we still need strong confirmation before considering going long. In the short term, the bearish pressure remains high, so a minor drop or a sideways movement is somehow expected after the current rally.

BTC/USD has increased by 9.36% from 53,308.93 yesterday's low to 58,298.06 today's high. Personally, I would like to see a minor consolidation before jumping higher. The rate needs strong consolidation before developing a new leg higher.

BTC/USD Throwback!

Bitcoin has found support below the decending pitchfork's median line (ml) and under the 50% retracement level and now it challenges the 38.2% retracement level. In the short term, it could could move sideways between the 50% (54,322.83) retracemet level and the 59,953.74 levels.

Technically, the median line (ml) stands as a dynamic support, On the other hand, the descending pitchfork's upper median line (uml) is seen as a dynamic resistance. Making a valid breakout through the upper median line could announce a strong swing higher.

BTC/USD Outlook!

58,933 - 59,953 stands as a strong resistance area. As long as it stays below it and under the upper median line (uml), we cannot talk about a larger growth. A sideways movement followed by a valid breakout through these upside obstacles could really announce an upside continuation towards fresh new highs.

A minor consolidation above the weekly pivot point of 56,718.35 may announce further growth towards the mentioned resistance levels.