FX.co ★ Bitcoin dropped as expected, 22,000 seen as key support

The price of bitcoin crashed in the short term. It was trading at 22,343 at the time of writing. BTC/USD dropped by 8.30% from Wednesday's high of 23,990 to 22,000 today's low.

In the last 7 days, bitcoin was down by 4.62% and by 4.20% in the last 24 hours. The current sell-off forced the altcoins to drop as well.

BTC/USD massive drop

Technically, you knew from my analyses that the BTC/USD could drop deeper despite its temporary rebound. Personally, I've mentioned the flag pattern and about a new sell-off. The price registered an aggressive drop, so a minor rebound could be natural.

It has found support on the median line (ml) and now it has tested and retested the weekly S1 (22,471).

BTC/USD outlook

The former low of 22,000 stands as a downside obstacle. A new lower low and a valid breakdown below the median line (ml) activates more declines and brings new short opportunities.