FX.co ★ Bitcoin to hit major target

The price of Bitcoin plunged after failing to stabilize above the 43,000 psychological level. Now, it's trading at 40,396 at the time of writing. BTC/USD is in a corrective phase in the short term.

BTC/USD registered a 5.09% drop from 42,415 today's high to 40,257 daily low. In the last 24 hours, Bitcoin is down by 6.37% and by 10.95% in the last 7 days.

BTC/USD Massive Drop!

BTC/USD plunged after registering only a false breakout above the 50% (42,989) retracement level and above the inside sliding line (SL) of the descending pitchfork. Now, it has reached the weekly S1 (40,281) which represents static support.

Technically, the median line (ML) and the 40,000 psychological level are seen as major and strong downside obstacles. False breakdowns through these levels or a major bullish pattern could signal that the downside could be over.

BTC/USD Outlook!

The bearish pressure remains high, BTC/USD could extend its sell-off anytime. Still, it remains to see how it will react around the median line (ML). A valid breakdown may signal downside continuation, while false breakdowns may signal a potential rebound.