Bitcoin rallied today and resumed the short-term rebound. It has managed to reach new higher, has passed above the 9035 former high. Price increased as much as 9270 today, but most likely will hit new highs in the upcoming hours.
It seems like that the crypto market is recovering after the amazing crash, the crypto could increase despite the negative talks. Bitcoin remains very attractive for the investors, traders so it should reach the historical high in the upcoming months because right now everyone will want to buy it again.
Bitcoin has shown strong oversold signs in the previous week, so the current rebound is natural and it was expected. I’ve said that we need a confirmation that the rate will start another leg higher, I believe that we get one on Friday when the rate has closed much above a confluence area.
You can see that the rate has increased after the failure to retest the third warning line (wl3) of the former ascending pitchfork. Price is pressuring the second warning line (wl2) of the ascending pitchfork, a valid breakout will confirm a quick increase towards the wl1 and towards the 61.8% Fibonacci level. A rejection from here could send the price towards the wl3 again, it could increase within this up channel.
I’ve told you in the previous days that the rate could be attracted by the median line (ml) of the ascending pitchfork if will stay above the 7778 static support and above the third warning line (wl3).
It will be very important what will happen when it will reach the median line (ml), a valid breakout will signal a further increase, while a rejection followed by a retest will send the rate down again on the short term.
A failure to reach the median line will signal an exhaustion as well, but personally, I really hope that the buyers are strong enough to force it to jump above the 10000 psychological level very soon.