Bitcoin can invalidate its corrective phase

Bitcoin has turned to the downside in the short term, but the bias remains bullish. It was trading at 47,469 at the moment of writing. The price action has developed a minor flag, a down channel, which could represent a continuation pattern.

Technically, BTC/USD may offer us great trading opportunities soon. It's located between crucial levels, so a valid breakout is likely to bring fresh signals. Bitcoin is down by 1.63% in the last 24 hours and by 1.17% in the last 7 days. The trading volume has increased by around 20% in the last 24h.

BTC/USD still bullish

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Bitcoin has dropped within the minor channel. The weekly S1 (46,544) and the level of 46,309 are seen as support levels. If the price hits a new lower low, closing below 46,309, it will fuel a deeper drop.

On the other hand, if the price stays above the support levels, makes an upside breakout from the current flag, and comes back above the weekly pivot point (48,572.14), it may invalidate the downside scenario and bring new long opportunities.

Forecast

Jumping and stabilizing above the weekly pivot point (48,572.14) represents a bullish signal.

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

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