Bitcoin increased in the second part of the day and has managed to erase some of the morning losses. Price has jumped above a broken static support signaling that the downside movement could be completed and we could see another leg higher.

The cryptocurrency moves somehow sideways on the short term, the perspective remains bullish despite all the rumors that it could drop aggressively. Personally, I believe that the corrective phase was natural and expected after the impressive rally.

We’ll see what will happen in the upcoming days, I really hope that we’ll have a clear direction very soon. Right now will be better to stay away from Bitcoin because we don’t have a trading opportunity.

The last bearish movement was expected after the failure to close above the fourth warning line (wl4) or near it. Price has failed once again to reach and retest the first warning line (wl1) signaling that the buyers could take the lead again. A further increase will be confirmed after a valid breakout above the second warning line (wl1) of the ascending pitchfork. However, a larger upside momentum will be validated after a breakout above the fourth warning line (wl4) which represents a very strong upside obstacle.

A further correction will be confirmed after a valid breakdown below the first warning line (wl1). Personally, I believe that will take this out if will reach it, so you should wait for a confirmation before you go long or short on Bitcoin.