FX.co ★ Bitcoin edges higher, 20,700 acts as key resistance

Bitcoin was trading in the green at 20,324 at the time of writing and it seems determined to approach and reach the immediate upside obstacles. After its massive drop, a temporary rebound was natural.

BTC/USD dropped as much as 19,526 where it has found support. It has increased by 4.35% from today's low to today's high of 20,376. In the last 24 hours, the crypto is up by 2.27% but it's down by 4.26% in the last 7 days.

BTC/USD Natural Bounce Back!

As long as it stays under the downtrend line, BTC/USD is bearish and it could drop again. Now, it challenges the 20,325 pivot point. The 20,700 level represents an upside obstacle.

Testing and retesting these levels, registering only fasle breakouts may announce a new sell-off. A deeper drop could be invalidated if the BTC/USD makes a valid breakout above the downtrend line and through 20,700.

BTC/USD Forecast!

After retesting the resistance levels, BTC/USD could turn to the downside. Also, failing to reach and retest the 20,700 and the downtrend line may announce strong selling pressure and a new sell-off.

A downside continuation could be activated by a valid breakdown below 19,526, by a new lower low.