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Bitcoin lost momentum, breakouts need validation

Bitcoin slipped lower after reaching the 48,505 level yesterday. This could be a temporary decline before resuming its upside journey. The pressure comes from the weekly pivot point and it seems under strong pressure.

Still, the bias is bullish, so personally, I'll look for new buying opportunities. The current decline could help us to catch a new bullish momentum. A temporary decline is natural after the most recent rally.

BTC/USD stands at 47,183 above 46,712 today's low. Most likely, it has decreased only to test and retest the immediate support levels before jumping towards new upside obstacles.

BTC/USD temporary decline?

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Bitcoin failed to stabilize above the broken static resistance of 47,637 level. It has decreased a little but it could still stay above the weekly pivot point (47,309) and beyond the 23.6% retracement level.

Registering only a false break below these levels could signal potential growth. It could increase as long as it stays within the Ascending Pitchfork's body. The median line (ml) is seen as a potential upside target.

Outlook

Coming back and stabilizing above 47,637 followed by a new higher high could represent an upside signal and provide a trading opportunity. The median line (ml) and the seventh warning line (wl7) are seen as potential upside targets.

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