BTC/USD dropped significantly after failing to stabilize above the 40,000 psychological level. It remains to see how it will react because is traded right above a major support zone.
A bullish reversal pattern could bring new long opportunities. On the other hand, registering a valid downside breakout from the current pattern could announce a larger correction in the upcoming period.
BTC/USD Leg Down!
Bitcoin is traded below the descending pitchfork's upper median line (uml). The pressure is high as long as it stays below this line. Coming back above this obstacle could signal a potential swing higher.
BTC/USD could resume its sideways movement. A false breakdown with great separation through 30,066, or a major bullish engulfing could signal an upside momentum.
Outlook!
We could search for long opportunities around the 30,066 level. Making a valid breakdown below this level signals further declines.
The material has been provided by InstaForex Company - www.instaforex.com