FX.co ★ Bitcoin: more declines below 16,736 static obstacle

Bitcoin crashed in the short term after reaching 18,373. Now it is trading at 16,798 and it seems very heavy. After its strong sell-off, we cannot exclude a temporary rebound. BTC/USD dropped by 8.87% from Wednesday's high of 18,373 to 16,743 today's low.

As you already know, the current sell-off forced the altcoins to drop as well. BTC/USD is down by 3.50% in the last 24 hours and by 2.03% in the last 7 days.

BTC/USD Massive Drop!

BTC/USD found resistance at the confluence area formed at the intersection between 18,150 with the ascending pitchfork's median line (ml). It has registered a false breakout with great separation and now it has turned to the downside.

Now, it has dropped also below the weekly pivot point of 17,081 and under the 150% Fibonacci line which represented downside obstacles. It challenges the 16,783 - 16,736 support.

BTC/USD Forecast!

A valid breakdown below 16,736 activates more declines and offers the chance to catch a larger drop. This could be seen as a short signal.