FX.co ★ Bitcoin under massive bearish pressure

The BTC/USD plunge invalidated potential upside continuation signaling that the rebound could be over. It was traded at 37,439.77 level at the time of writing far below yesterday's high of 39,285.

Bitcoin dropped by 5.60% from yesterday's high to 37,085 today's low. The price registered false breakouts above the near-term upside obstacles signaling exhausted buyers. Technically, the rebound could be only a temporary one, so the pressure remains high.

BTC/USD Triangle breakdown

As you can see on the H4 chart, BTC/USD challenges the triangle's support after registering only false upside breakouts from this formation. From the technical point of view, following false upside breakouts, the price could register a valid downside breakout.

The 36,631.66 former low and the weekly pivot point (36,603.18) are seen as support levels. A valid breakdown below these obstacles could open the door for a larger drop.

BTC/USD outlook

Bitcoin registered only false breakouts above 38,946 and above the triangle's resistance. Dropping and closing below the weekly pivot point (36,603) could activate a strong drop. This scenario could also bring new selling opportunities.