Bitcoin dropped aggressively in the yesterday’s session and erased the impressive gains. Price increased a little in the morning, but the bears have stepped in and have taken the lead again. Price is trading in the red right now and seems determined to reach new lows in the upcoming hours. Remains to see what will really happen because the price is approaching a crucial support.

Bitcoin is pressuring a dynamic support, has slipped below this downside obstacle, a valid breakdown will signal a further drop on the short term. Is very important what will happen in the upcoming days because the corrective phase could continue if the support will give up. I’ve said in the previous week that the rebound could be only temporary and the rate could come back down to retest some support levels before will really start a larger rebound.

A breakdown below the near-term support levels will signal a further drop towards the 8000 – 7000 psychological levels. We had a first signal that the rate may jump in the buyer’s territory, but the crypto remains under massive pressure as the fundamental factors are very strong.

You can see that the rate has come back to retest the inside sliding line (sl) of the minor descending pitchfork. Looks like we had only a false breakout above the sliding parallel line (sl) and above the upper median line (UML) of the ascending pitchfork. Price has dropped below the median line (ML) signaling a drop at least till the lower median line (LML).

Bitcoin could find support at the 61.8% retracement level as well, but is less likely because is very heavy on the short term. Personally, I believe that the crypto will make a valid breakdown below the lower median line if will  touch it again and will close on it or near it.

A valid breakdown below the median line (ml) of the descending pitchfork will confirm a further drop as well. I want to remind you that a larger rebound will be confirmed only after a valid breakout from the descending pitchfork’s body.  Support can be found at the first warning line (wl1) as well an lower at the 7568-7778 area.