Bitcoin another sell-off? January 04, 2019

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Bitcoin seems undecided on the Daily chart, but you should know that the perspective remains bearish. Maybe the rebound will be only a temporary one and the rate will drop again and will approach and reach fresh new lows.

Right now we still need a confirmation that the rate will drop much deeper. Bitcoin is trading near a very strong dynamic resistance, but most likely it will drop aggressively if it will fail to reach this upside obstacle.

The next days could be crucial because if the Bitcoin will drop again, then the crypto market will drop as well.

You can see that the price has increased and it was almost to reach the median line (ml) of the descending pitchfork, but it has failed, signaling exhaustion and a potential drop. You can see that it has increased after the failure to reach and retest the downside 50% Fibonacci line of the descending pitchfork.

Technically, this could be only a temporary rebound, but the rate could still drop and could reach the 350% Fibonacci line of the ascending pitchfork. A valid breakdown below this line could send the rate at least till the 2980.4 static support.

The perspective remains bearish as long as the rate stays below the median line (ml). Personally, I believe that we may have an important upside movement only if the rate will stay above the 3215.2 former low.

Maybe it will increase after another failure to reach and retest the 50% Fibonacci line of the descending pitchfork or if we’ll have only a false breakdown below the 3215.2 former low and below the 2980.4 static support.

Personally, I would like to see a major consolidation before the rate will give birth to an important upside movement.

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