Bitcoin climbed as much as 21,012 yesterday registering a new high. Now, it is trading at 20,596 at the time of writing. After its strong rally, a temporary retreat is natural. The rate could test and retest the near-term downside obstacles before jumping higher.
In the last 24 hours, BTC/USD is down by 1.17% but it’s still up by 6.83% in the last 7 days. Bitcoin’s rally helped the altcoins to increase as well. So, DXY’s further growth could push the other major cryptocurrencies higher.
BTC/USD Retesting The Buyers!
As you can see on the H1 chart, Bitcoin came back down to test and retest the 20,381 range’s resistance. You knew from my previous analyses that BTC/USD moved sideways within an extended range.
Now, it has escaped from this pattern by taking out the 20,381 resistance. Technically, the current drop could be only a temporary one. The bias remains bullish despite a minor retreat.
BTC/USD develop a minor flag pattern that could announce an upside continuation. Testing and retesting the 20,381, registering false breakdowns may announce a new bullish momentum. A valid breakout above the minor downtrend line and a new higher high activates an upside continuation and brings new long opportunities.
The material has been provided by InstaForex Company – www.instaforex.com