Bitcoin larger drop activated

Bitcoin dropped as low as 55,640, printing a new lower low. The pressure is high, so a further drop is imminent. Technically, the price dropped below major downside obstacles, confirming strong sellers and a larger corrective phase.

BTC/USD is trading at 65,317 level at the time of writing far below 60,978.39 yesterday's high. Its failure to stay above the 60,000 psychological level signaled a broader drop. In the last 7 days, BTC/USD is down by 12.93%, and by 5.88% in the last 24 hours.

BTC/USD Downside Obstacle Continue To Be Breached!

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BTC/USD has taken out the support zone between 59,953.74 - 58933.00 support area and now is traded below the descending pitchfork's median line (ml). As long as it stays under this broken dynamic support, Bitcoin could extend its downside movement.

Also, dropping below the 38.2% retracement level and under 56,425 low signaled that BTC/USD could extend its correction. Still, in the short term, the crypto could come back to test and retest the median line (ml) before dropping deeper.

BTC/USD Outlook!

Bitcoin announced a corrective phase after registering a false breakout above the descending pitchfork's upper median line (uml) and above 68,564 former all-time high. Its current drop below the descending pitchfork's median line (ml) opened the door for a larger downside movement.

Testing and retesting the median line (ml), staying under this broken support may signal a potential drop towards the 50% (54,300.34) retracement level or even lower towards the 61.8% retracement level, around the 50,000 psychological level.

Coming back and stabilizing above the median line (ml) could signal that the downside movement could be over.

The material has been provided by InstaForex Company - www.instaforex.com

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