Bitcoin was dropping at the time of writing having failed to stabilize above the 50,000 psychological level. It was trading at 49,445 level below 50,390 today's high. It has failed to reach 50,562.11, a former high signaling selling pressure.
Despite the current retreat, Bitcoin is still up by 1.55% in the last 24 hours and by 5.73% in the last 7 days. In the short term, BTC/USD moves sideways between 50,562.11 and 46,309.33 levels. Technically, the price action has invalidated a potential corrective phase.
BTC/USD Temporary Decline!
Bitcoin is trading far above 48,558.32 weekly pivot point. Unfortunately, it has failed to reach the uptrend line, the 50,562, or the weekly R1 (50,822) level. We cannot exclude a temporary decline towards the weekly pivot point before jumping higher.
Technically, the price of Bitcoin could decrease a little trying to attract more bullish energy before jumping higher. Personally, I believe that Bitcoin could still approach and reach the immediate resistance levels.
Its failure to make a new lower low, to drop below 46,309.33 signaled an upside movement and it has invalidated a corrective phase. Actually, BTC/USD failed to reach the former low. It has registered only a false breakdown below the weekly S1 (46,555).
A temporary decline could help us to catch a new upside movement. An upside continuation could be confirmed after a valid breakout above 51,000 psychological level. 50,000 psychological level stands a strong supply level. That's why the price could decline a little trying to attract more buyers.The material has been provided by InstaForex Company - www.instaforex.com