empty
 
 
21.10.2021 09:26 PM
Bitcoin's rop may end soon

Bitcoin plunged after reaching a fresh all-time high of 67,016.50. It has dropped as low as 61,850 in today's session where it has found support. BTC/USD registered a 7.71% fall from the fresh historical high to the current daily low.

Technically, the price of Bitcoin reached strong support levels, former resistance levels. A bullish pattern printed could bring a new leg higher. Still, BTC/USD has shown overbought signs, but it's premature to talk about a larger downside movement.

BTC/USD at support

This image is no longer relevant

BTC/USD failed to stabilize above 64,895.22 former all-time high and now it stands under the second warning line (wl2) of the Ascending Pitchfork. It has found temporary support right above 61,781.83 key level.

As you can see, the price of Bitcoin is trapped within an up channel. The bias remains bullish as long as the rate stands within this pattern. From the technical point of view, we have a strong confluence area at the intersection between the 250% line with 61,781.83 and with the uptrend line.

Making a false breakdown through this area or printing a major bullish engulfing pattern may bring new bullish momentum.

Bitcoin outlook

The outlook is bullish, as the current retreat could help us to catch new upside movements. A bullish pattern on the immediate support levels may bring new long opportunities. Bitcoin is still expected to increase despite the price failing to reach and retest the channel's upside line signaling potential exhaustion.

Technically, only a valid break below the uptrend line could invalidate the upside scenario. BTC/USD could start increasing again as long as it stays above the 61,781 level.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback