Bitcoin traded higher at 51,401 at the time of writing versus 48,656 today’s low. As you already know, BTC/USD was into a corrective phase in the short-term after reaching a fresh all-time high of 58,354 last week.
Dropping by approximately 23% in less than 48H caused panic among traders and investors. Still, a temporary decline was expected after its last upwards movement, growth. So, the most recent decline could be considered as a natural one despite all kinds of rumors in the market.
BTC/USD Technical Analysis!
As you can see on the H4 chart, BTC/USD is traded back above the red uptrend line pressuring the 23.6% Fibonacci level. It has tested and retested the short-term uptrend line and the S1 (49,486) and now it seems determined to resume its bounce back.
Personally, I believe that a bullish closure above 23.6% and beyond 51,459 former high could really signal that BTC/USD will continue to increase in the short term. The upside, bullish, outlook remains intact as long as the price stays above the red uptrend line.
The short-term correction ended right below the 38.2% retracement level and above the ascending pitchfork’s lower median line (LML). The major bullish engulfing printed on the 38.2% level invalidated the breakdown through the uptrend line and signals that the retreat is over.
Failing to drop towards 42,000 static support or lower to the S2 (41,482) indicates that the price could still come back higher towards 58,354 in the upcoming period.
Bitcoin (BTC/USD) could increase and resume its major uptrend as long as it stays above the immediate uptrend line and within the ascending pitchfork’s body, above the lower median line (LML).
The price will definitely develop a larger decline, sell-off, if it drops and stabilizes under the lower median line (LML) and below the 38.2% retracement level.