FX.co ★ Bitcoin: new down channel

The price of bitcoin rebounded after failing to reach and retest the 39,000 psychological level. Now, it's trading at the 40,986 level at the time of writing. BTC/USD increased by 5.61% from 39,218 Monday's low to 41,417 today's high.

In the last 24 hours, BTC/USD is up by 2.60%, but it's down by 6.46% in the last 7 days. As you already know from my analyses, Bitcoin is in a corrective phase, so the bias remains bearish.

BTC/USD Temporary Rebound?

In the short term, the price action developed a down channel. BTC/USD found support right below the descending pitchfork's median line (ML) and now is trying to rebound and recover after its massive drop.

As long as it stays under the downtrend line, BTC/USD could develop a new bearish momentum. After its massive drop, a bullish momentum was favored. A valid breakout above the channel's resistance could signal that the downwards movement could be over.

BTC/USD Outlook!

Despite the current rebound, BTC/USD maintains a bearish bias. It could drop anytime as long as it's traded below the channel's resistance. Also, the descending pitchfork's inside sliding line (SL) represents a major dynamic resistance.

Strong consolidation above 40,000 psychological level could help the buyers to catch a potential leg higher.