Bitcoin has continued to drop on the short term and has reached fresh new lows. It remains to see where it could find a strong demand again. Price dropped as the fundamental factors are still very strong, the traders are bearish after the regulation talks.

Personally, I still believe that the crypto will start to climb again and will reach new highs again. Bitcoin dropped aggressively and lost more than half of its value since December 18. The current drop was accelerated by the negative talks, I still believe that this doesn’t represent the reality. If you’ll take a look at the SP500, DJIA30 you’ll see an aggressive drop. The mentioned stock indexes have plunged and could hit fresh new lows as well in the upcoming days and weeks, so I believe that what happened on the crypto market could happen on every market at one point.

Price continues to drop within the descending pitchfork’s body, is trapped between the median line (ml) and the upper median line (uml). It remains to see what will really happen in the upcoming days, a minor rebound is somehow expected if the rate will close once again much above the median line (ml).

A false breakdown below the median line could signal an oversold and a potential upside movement. I want to remind you that only a valid breakout from the descending pitchfork will really signal a larger rebound. So we should wait for a valid breakout followed by a minor consolidation to be sure that it will really turn to the upside again. Right now is still under massive selling pressure on the Daily chart, that’s why you should stay away until we’ll have a bullish signal.