The rate increased a little today and resumed the yesterday’s bullish candle. Bitcoin approaches the 7000 psychological level, it remains to see how will react when will hit this level. Price has found strong support at an important dynamic support.

We still have to wait for a confirmation that the crypto will move towards significant upside targets. Bitcoin is still trapped below some very important levels, but I still believe that we may have a larger rebound if the rate will jump and will stabilize above the 8000 psychological level.

I’ve said in the yesterday’s report that the rate has come back down to test and retest the upside line of a broken chart pattern. I’ll repeat myself, but I want to remind you that it is premature to talk about a larger rebound because the selling pressure is still high.

Price is narrowing on the short term and the retest of the outside sliding parallel line (sl) could send the rate above the lower median line (lml) of the minor ascending pitchfork. You can see that the rate has failed to retest the upside line of the Falling Wedge pattern signaling that the bulls are in control.

I’ve said that a valid breakout from the chart pattern will confirm a minor increase and only a valid breakout above the 7778 static resistance will really confirm a further increase at east till the 150% Fibonacci line (ascending dotted line).

However, a failure to increase further could send the rate below the sliding line (sl) and you should know that it should move towards the first warning line (WL1) of the major ascending pitchfork. The next days will be crucial because another bearish momentum will force the other cryptocurrencies to drop as well.