Bitcoin dropped today and resumed the yesterday’s bearish candle. It remains to see what will happen because the crypto is still under massive selling pressure, it has failed to resume the minor rebound. The rate is trading in the red again and seems determined to approach and reach a dynamic support in the upcoming hours. A valid breakdown will signal a further drop at least till the 7596 previous low.

Bitcoin shows some oversold signs in the previous week and started to increase again, but has failed to pass above a very strong static resistance and now comes down to find demand again.

There are many specialists that continue to sustain that the crypto will drop towards the 5000 psychological level, it could drop further, but only if will take out the near-term support levels.

You can see that the rate has found strong resistance at the 23.6% retracement level and now is pressuring the 50% Fibonacci line. It is almost to reach the outside sliding parallel line (sl2) of the major red ascending pitchfork, where it could find support as well.

A rebound from the mentioned support levels will send the rate much above the 23.6% retracement level. The next upside target will be at the sliding line (sl) of the minor ascending pitchfork. I’ve said in the previous report that it should climb at least till the median line (ml) of the minor ascending pitchfork after the failure to approach and reach the lower median line (lml) of the minor ascending pitchfork.

However, a valid breakdown below the sliding line (sl2) will confirm a further drop, it could drop through the 7568 static support as well. You should know that only a valid breakdown from the minor ascending pitchfork’s body will really confirm a drop towards the 5000 psychological level.