FX.co ★ Bitcoin: correction in play

The price of bitcoin is trading in the red at 47,025 at the time of writing. After its amazing rally, a temporary drop is natural. The price could come back down to test and retest the immediate downside obstacles before turning to the upside.

In the short term, ETH/USD changed little. Still, it has shown some overbought signs. BTC/USD's potential drop may force the altcoin to lose altitude as well. In the last 24 hours, the price of bitcoin is down by 1.03% but it's still up by 10.29% in the last 7 days.

BTC/USD Temporary Retreat!

Technically, the price of bitcoin failed to make a new higher high and now it has slipped below the channel's upside line signaling exhausted buyers. BTC/USD registered only false breakouts above the 48,000 psychological level announcing potential retreat.

45,501 stands as a strong downside obstacle. After the aggressive breakout through this level, BTC/USD was somehow expected to retest it before extending its growth.

BTC/USD Outlook!

After its amazing rally, a temporary retreat was expected. Coming back to test and retest the 46,000 and the 45,501 could bring new long opportunities.