Bitcoin was trading in the red at 43,619 level, hovering above the 43,000 psychological level. Technically, it has printed a false break with great separation below this level signaling a strong demand area.
Still, it remains to see what will really happen as the pressure is high. Making a new lower low, a valid breakout below the support zone may really announce a deeper drop. BTC/USD is likely to come under massive pressure in the short term. It has dropped by 9.19% in the last 24 hours. A deeper drop could drag the altcoins down as well.
The volume rose in the last 24h by 51.26%, while the market cap is down by 8.98%. More sellers will jump in if a larger sell-off is confirmed.
Bitcoin downside breakout activates larger correction
Bitcoin failed to stay above 47,637 and within the Ascending Pitchfork's body signaling strong sellers and selling pressure. It has registered only a false breakout with great separation through 43,000 and 42,900 levels. Today's low of 42,453 is seen as a critical level.
Dropping and stabilizing below it may activate a further decline. This scenario could signal a potential drop below 40,000 psychological level.
Outlook
A bearish closure below today's low of 42,453 may activate a larger downside movement towards 40,000 and 38,000 psychological levels.
The material has been provided by InstaForex Company - www.instaforex.com