Bitcoin rebounded on the short term and has retested a broken dynamic support. You should know that the rebound could be only temporary and the rate could drop again and could reach fresh new lows. Maybe it will try to climb even higher in the upcoming days because it may want to test and retest another dynamic resistance before will drop.
We’ll see what will really happen in the upcoming period because the perspective remains bearish. If you’ll read the previous reports you will notice that I’ve talked about a potential rebound if the rate will make a false breakdown or if it will fail to reach the near term dynamic support.
You can see that the rate has failed to reach and retest the downside 50% Fibonacci line of the descending pitchfork which represents a very strong and crucial support. Personally, I still believe that the rate will try again to approach and reach the 50% Fibonacci line in the upcoming period.
Maybe the rate will try to test and retest the median line (ml) as well before will drop again. You could catch another minor downside movement from the median line (ml) if the rate will make a false breakout or a retest followed by a failure to retest this level.
I want to remind you that the rate could give birth to an important upside movement if the rate will fail to reach and retest the 50% line in the next attempt or if we’ll have a false breakdown. Right now it s premature to talk about an important upside movement because we don’t have any reversal signal. So, you should stay away for now and wait for the behavior to change and the rate to make a stronger accumulation and higher lows before you’ll go long again.