FX.co ★ Bitcoin: larger retreat, 19,947 as key support

BTC/USD dropped in the short term and now is located at 20,280 above 20,008 today's low. It has dropped by 4.78% from Wednesday's high of 21,012 to the daily low. After its strong growth, a sell-off was natural. It could test and retest the near-term support levels before developing a new bullish momentum.

In the last 24 hours, Bitcoin is down by 2.00% but it continues to be up by 7.13% in the last 7 days.

BTC/USD Temporary Drop?

BTC/USD dropped after reaching the weekly R3 (21,002). Now, it was almost to reach the R1 (19,962). 19,947 represents a static downside obstacle as well. In my opinion, the retreat could be only a temporary one.

Staying above the 19,947 and 19,700 levels, Bitcoin could develop a new leg higher. Still, only a valid breakout through the downtrend line may really confirm an upside continuation.

BTC/USD Forecast!

Jumping, closing, and stabilizing above the downtrend line and above 20,381 signals that the retreat ended and that buyers could take full control. This is seen as a new long opportunity. Also, a new higher high, making a valid breakout through the R3 (21,002) could really confirm a larger growth.