The Bitcoin plunged and reached new lows on the short term. I’ve said in the yesterday’s article that we may see a minor drop on the short term after the failure to close above some important dynamic resistance levels. The rate is pressuring an important dynamic support, we’ll see what will happen in the upcoming hours because a valid breakdown will attract more sellers.

Bitcoin has found strong resistance at the first warning line (WL1) of the ascending pitchfork, has retested the second warning line (wl2) of the descending pitchfork, but failed to close near this line. The current drop is natural and is understandable, but remains to see if will close below the outside sliding line (SL) of the ascending pitchfork.

I’ve said in the yesterday’s article that remains to see if we’ll have an accumulation or a distribution between the WL1 and the SL. Price plunged and reached the 5118 level today, but has squeezed and now is located at 5426 level, remains to see if will close below the SL. A retest of the SL could bring us a good selling opportunity. I want to remind you that only a valid breakout above the second warning line (wl2) of the descending pitchfork will signal a further increase.

The Ethereum plunged and resumed the corrective phase. Price plunged below the 50% Fibonacci line (ascending dotted line), but failed to stay there and now is located much above it. I’ve said in the last report that the rate should reach the 50% line after the failure to take out the resistance from the SL.

A valid breakdown below the 50% level will confirm a further drop towards the upper median line (uml) of the descending pitchfork.