FX.co ★ Bitcoin: bearish continuation pattern

Bitcoin dropped as much as 28,842 where it has found demand again. It has rebounded and it could reach and retest the near-term resistance levels. After its massive sell-off, a rebound was natural. It has increased by 1.93% from 28,842 Monday's low to 29,398 today's high.

In the last 24 hours, Bitcoin is up by 0.30%, but it's down by 1.95% in the last 7 days. In the short term, the downside pressure remains high, so further drop is in cards.

BTC/USD Downside Pressure!

As you already know from my previous analysis, BTC/USD escaped from the major range pattern announcing more declines. Now, it has rebounded, developing a flag pattern.

Technically, this minor up channel is seen as a bearish formation. 29,600 and the downtrend line represent resistance levels.

BTC/USD Forecast!

A valid breakdown below the flag's support and under the S2 (29,114) may announce more declines. As long as it stays below the downtrend line, BTC/USD could drop deeper anytime.