FX.co ★ Bitcoin rallies as expected

Bitcoin rallied in the short term after invalidating more declines. Now, it's trading at 16,871 below 17,072 today's high. You knew from my previous analysis that the BTC/USD could try to develop a larger rebound.

BTC/USD increased by 3.91% from today's low of 16,430 to the 17.072 daily high. Now, it could test and retest the near-term support levels before jumping higher.

BTC/USD Continuation Pattern Violated!

BTC/USD rallied and now it has stabilized above the former high of 16,783. After its strong rally, a minor retreat was natural. It has found resistance right above the R1 (16,978). It has registered only a false breakout and now it accumulated more bullish energy.

The 17,000 psychological level represents an upside obstacle as well. Testing and retesting 16,783, registering only false breakdowns may announce an upside continuation.

BTC/USD Outlook!

A valid breakout through the R1 (16,978), a new higher high confirm further growth at least towards the R2 (17,532).