The Bitcoin has decreased significantly today and has resumed the last day’s bearish momentum. It remains to see what will happen in the upcoming days because the rate seems unstoppable. Price is very heavy after the false breakout above some important dynamic resistance levels.

Bitcoin is pressuring a crucial support line, a valid breakdown will confirm a further drop at least till the 7570-7780 area. The rate has dropped as the fundamental factors are very strong, I’ve said in the last weeks that technically it is somehow expected to increase, but the regulation talks have forced the rate to drop again.

Price has turned to the downside again and seems to heavy to be stopped on the short term, we have an important downside target near the 5500 psychological level.

Right now is hard to believe that the rate will increase until will reach another major downside target, so is premature to talk about a larger rebound as long as the rate is trapped below some very important dynamic resistance.

You can see that the rate has dropped after the retest of the median line (ml) of the minor ascending pitchfork. Price failed to stabilize outside the descending pitchfork’s body and now is pressuring the first warning line (wl1) of the ascending pitchfork and the sliding line (sl).

A valid breakdown below the mentioned support levels will signal a further drop towards the median line (ml) of the minor descending pitchfork, where it could find temporary support again. Only a false breakdown below the mentioned support levels will signal an oversold and a potential increase.

Unfortunately, the perspective remains bearish after the impressive breakdown below the 61.8% retracement level. Personally, I still believe that a valid breakout above the upper median line (uml) of the descending pitchfork will confirm a larger rebound.