The crypto has dropped aggressively today and seems determined to reach and test some crucial support levels. Many specialists have said that the rebound will be only temporary and the rate will drop below the 5000 psychological level in the upcoming period.

Personally, I still believe that the rate will climb much higher in the upcoming months despite all regulation talks. I’ve said in the last days that the rate could still decrease a little to retest some support levels (resistance has turned into support). We’ll see what will happen after today’s aggressive drop because technically it is still located in the buyer’s territory.

The today’s drop could give us a chance to go long again on Bitcoin, so you should keep an eye on the Daily chart for another buying opportunity.

The crypto failed to stay above the first warning line (wl1) of the minor ascending pitchfork, has also failed to reach the confluence area formed between the 50% Fibonacci level with the lower median line (lml) signaling an exhaustion on the short term.

Price could test and retest the broken dark blue downtrend line, it could be attracted by the major confluence area formed between the downtrend line with the warning line (wl2) and with the median line (ml) of the black ascending pitchfork. Only a valid breakdown will signal a further drop, actually, this will accelerate the sell-off.

We may have a buying opportunity if the rate will be rejected by the mentioned confluence area. We’ll see what will really happen because the rate could drop towards the lower median line (LML) of the major red ascending pitchfork. A failure to reach and retest the LML will really signal a larger upside movement which could jump above the 20000 psychological level.