Bitcoin dropped significantly and resumed the bearish momentum. The current drop was somehow expected after the false breakout above a dynamic resistance. I’ve said in the yesterday’s article that it should drop further on the short term after the breakdown bellow some crucial support levels. Price approaches some very important support levels, remains to see it these will hold.

The fundamental factors drive the price towards new lows, it remains to see where will find a bottom. I’ve said in the yesterday’s report that the crypto could find a strong supply only near the 5500 psychological level.  It seems like that the short rebound was only temporary after the last impressive drop, but the buyers weren’t strong enough to push it higher. Fundamentally, it is hard to be analyzed, that’s why I don’t like it very much, personally, I believe that everything you need to know is priced in.

Price approaches the 7778 static support as expected after the aggressive breakdown below the first warning line (wl1) of the ascending pitchfork and after the failure to test and retest the upper median line (uml) of the descending pitchfork.

It should be attracted by the median line (ml) of the descending pitchfork. Price drops naturally after the breakdown below the 9168 previous low, it remains to see how will react when will hit the median line (ml). Only a failure to reach the median line will signal an oversold and a potential rebound. Personally I still believe that a valid breakout outside the descending pitchfork’s body could bring us a great buying opportunity and a larger rebound. Personally, I believe that the rate could breakdown below the median line  (ml), but will fail to stay there and the behavior will change again. Is premature to talk about a rebound right now as long as the traders and the investors are panicked.