Bitcoin dropped aggressively and resumed the yesterday’s minor bearish candle. Price is trading in the red and seems unstoppable on the short term, It is pressuring some important support levels (resistance turned into support), a valid breakdown below these levels will confirm a larger drop in the upcoming days. However, the perspective remains bullish on the short term despite the minor drop. The retreat is natural after the amazing rally, the corrective phase could be only temporary. Right now we don’t have any reversal signs, so you don’t have to worry because Bitcoin could still reach fresh new highs till the end of the year.

Price plunges and is pressuring the second warning line (WL2) of the ascending pitchfork and the fourth warning line (wl4) of the descending pitchfork. We have a major confluence between these two dynamic support levels, a valid breakdown through this area will accelerate the sell-off, while a rejection will send the rate towards the 7561 historical high. I’ve said in the yesterday’s article that the price failed to reach the confluence area formed between the WL3 with the fifth warning line (wl5) of the descending pitchfork, so the next upside target will be at the wl5. I’ve said that technically we may have a reversal from the fifth warning line (wl5), but  a failure to drop below the wl4 and below the WL2 will favor a breakout above the wl5.