Bitcoin increased yesterday and has managed to breakout through a very important confluence area signaling that the price is expected to climb much higher. Price decreased a little today and has erased the morning gains.

The rate has reached fresh new highs in the morning, has climbed as much as 6216, but now has come down to retest a support level before will climb much higher. I’ve said in the yesterday’s article that the price may increase further in the upcoming period as long as is located above a dynamic support and because has made a false breakdown below some important dynamic support levels.

Bitcoin rallied through the confluence area formed between the upper median line (uml) of the minor descending pitchfork with the first warning line (WL1) of the major ascending pitchfork and with the 350% Fibonacci line (descending dotted line). We may have a buying opportunity after the retest of the WL1, a valid breakout above a confluence area accelerates the bullish momentum. Technically is expected to climb at least till the third warning line (wl3) of the former descending pitchfork and towards the 250% Fibonacci line (ascending dotted line) of the ascending pitchfork.

Only a failure to reach the mentioned upside targets will signal an exhaustion and a potential drop on the short term.