FX.co ★ Bitcoin at crossroads, attention at support

The price of Bitcoin is trading in the red at the time of writing. The pressure remains high, so a deeper drop won't be a surprise. It's trading at 37,934.24 at the time of writing above 37,592.73 today's low.

It remains to see what will really happen as the price continues to challenge dynamic support. BTC/USD dropped by 5.31% from yesterday's high of 39,701 to today's low. In the last 24 hours, the crypto is down by 2.11% and by 7.50% in the last 7 days. Bitcoin's drop caused the altcoins to drop as well.

BTC/USD Sellers In Control!

BTC/USD is putting pressure on the ascending pitchfork's lower median line (lml) which represents dynamic support. After failing to stabilize above the ascending pitchfork's median line (ml), a sell-off was expected. Dropping below 40,330.99 static support signaled a potential drop at least till the pitchfork's lower median line (lml).

A valid breakdown below this dynamic support could open the door for a larger drop. Only staying above it may announce a new bullish momentum.

BTC/USD Outlook!

The pressure is high after failing to make a new higher high. As you can see on the H4 chart, BTC/USD is moving somehow sideways. A valid breakdown below the lower median line (lml) could announce a potential deeper drop towards the 34,324.05 lower low.

A false breakdown below the lower median line (lml) may announce that the sell-off ended and that the price of Bitcoin is developing a new leg higher.