Bitcoin dropped again after my yesterday's analysis in which I recommended retesting the immediate support levels before deciding on its further direction. At the moment of preparing this material, BTC is trading at $50,371, creating an immediate upside obstacle.

From a technical point of view, the price failed to make a more significant downward movement, signaling that it could recover in the short term. BTC/USD could rebound following a massive sell-off and an unsuccessful attempt to consolidate below the $50,000 psychological level.

BTC/USD Invalidated More Declines!

BTC/USD formed a new false breakdown below the weekly S3 ($47,658) and the $47,464 static support level, signaling a potential upside momentum.

As I noted yesterday, Bitcoin could start gaining in value again if it consolidates above the S2 ($50,289) and beyond the descending pitchfork's median line (ML).

Bitcoin Outlook!

If bitcoin closes above today's high of $50,891, this could indicate its further bullish run towards the upside 50% Fibonacci line. The S1 ($54,288) could be seen as the first target.