Bitcoin rallied and jumped much above the 6763 yesterday’s high and seems determined to reach fresh new highs. Has climbed as much as 7286 level today, but seems like has found a temporary resistance and now could come down to retest a broken dynamic resistance before will climb much higher. Price is strongly bullish on the Daily chart again, but remains to see will react in the upcoming days because is approaching a very strong resistance area.

Bitcoin has broken above an important dynamic resistance but remains to see if this will really be a valid breakout, or the rate will close below it and will drop again.

You can see on the Daily chart that the rate has rallied and jumped much above the 6837 previous high, above the fourth warning line (wl4) of the descending pitchfork and above the second warning line (WL2) of the ascending pitchfork. Price is pressuring the WL2, you can notice that there are chances to close the current session below it, which will signal a minor exhaustion on the short term. The current rebound is natural after the failure to reach and retest the second warning line (wl2) and the upper median line (uml) of the ascending pitchfork.

A failure to reach the fifth warning line (wl5) will send the rate tumbling again on the short term. Technically, it will take out the wl5 if will reach it and if will close on it. Right now is better to stay away from Bitcoin because we don’t have a trading opportunity right now, but I hope that we’ll have one very soon. A false breakout above the WL2 followed by a retest will confirm a quick drop.