Bitcoin rallied aggressively and has managed to jump much above a major dynamic resistance. Price is strongly bullish on the Daily chart and seems motivated to hit fresh new highs in the upcoming hours. However, remains to see what will really happen because the rate has reached an important dynamic resistance again, actually it was attracted by a confluence area.

Technically it is expected to make a valid breakout above the confluence area, but remains to see because a false breakout will signal a minor exhaustion.

You can see on the Daily chart that the rate has managed to make an impressive rally above the sixth warning line (wl6) of the former descending pitchfork. Bitcoin increased as much as 8961 today and has climbed above the fourth warning line (WL4) of the ascending pitchfork and above the seventh warning line (wl7) of the descending pitchfork, but failed to stay there.

We’ll see in the upcoming hours if the rate will have enough directional energy to make a valid breakout above the confluence between the wl7 with the WL4. A valid breakout will accelerate the upside momentum, while a fake out and a rejection will send the rate tumbling in the upcoming days. You should know that the perspective remains bullish on the daily chart and should climb much higher even if we’ll have a minor retreat.

A rejection from the mentioned confluence area will announce a minor drop towards the third warning line (WL3) of the ascending pitchfork. We may have a selling opportunity if the rate will drop a little after the retest of the wl7 with a target at the WL3, but maybe will be better to stay away if the rate will decrease a little and to try to catch a buying opportunity from the WL3 because the rate could make an aggressive rally anytime.

A buying opportunity will appear also if the rate will make a valid breakout above the confluence area, so right now will be better to stay away because we don’t have any trading opportunity, but I hope that we’ll have one very soon.