FX.co ★ Bitcoin aims at 20,700

The price of Bitcoin plunged after escaping from the Rising Wedge pattern. At the time of writing, it was trading at the 21,376 level and it could approach and reach new lows after ignoring strong downside obstacles.

BTC/USD dropped by 9.85%, from yesterday's high of 23,593 to the daily low of 21,268. The pressure is very high, so a further drop is on the cards.

BTC/USD Dropped As Expected

As I've mentioned in my previous analysis, Bitcoin could drop deeper after failing to retest 23,615 and as long as it stays under the downtrend line. Escaping from the Rising Wedge pattern and dropping below the uptrend line signaled a new sell-off.

Now, it has ignored the 22,400 key level and the S2 (21,629), signaling strong downside pressure.

BTC/USD Outlook

Bitcoin retested the S2 (21,629) broken support confirming a breakdown. False breakouts above this upside obstacle followed by a new lower low and dropping and closing below 21,268 could activate more declines towards the 20,700 key support.