FX.co ★ Bitcoin: rising wedge violated

Bitcoin dropped a little in the short term after reaching the 21,646 level. Now, it is trading at 20,801 at the time of writing. The upside pressure remains strong despite temporary and minor retreats.

Yesterday, BTC/USD dropped by 5.95% from a 21,646 high to a 20,358 daily low. Still, the cryptocurrency is up by 15.39% in the last 7 days.

BTC/USD 20,604 Key Support!

BTC/USD found resistance at 21,473, it has registered only false breakouts signaling exhausted buyers. Now, it has found support on the 20,634 former low. You knew from my previous analyses that this could stop an eventual sell-off.

As you can see on the H4 chart, the rate escaped from the minor Rising Wedge pattern, but only a valid breakdown below 20,634 and a new lower low activates more declines.

BTC/USD Forecast!

As long as it stays above 20,634, the bias remains bullish. A valid breakout through 21,473 activates further growth and brings new longs. A buying opportunity could also appear if the rate comes back to test and retest the weekly pivot point of 19,746.