FX.co ★ Bitcoin: bearish pattern activated

Bitcoin dropped again after failing to stabilize above the 18,000 psychological level. Now, it is trading at 16,798. As you already know, the bias remains bearish despite temporary rebounds. Actually, as long as the bias remains bearish, minor throwbacks could bring new short opportunities.

BTC/USD dropped by 9.67% from yesterday's high of 18,150 to 16,394 today's low. Still, after its sell-off, the crypto could try to test and retest the near-term upside obstacles before dropping deeper.

BTC/USD Bearish Bias Intact!

As you can see on the H1 chart, the rate escaped from the flag pattern signaling more declines. It has found support at 16,394 and now it seems undecided. The minor downtrend line represents an upside obstacle.

You knew from my previous analysis that, BTC/USD could drop towards new lows as long as it stays under the 18,271 - 18,540 resistance zone.

BTC/USD Outlook!

A new lower low, dropping and closing below 16,394 activates more declines and helps the traders to go short.