The Bitcoin plunged in the last days and reached the 9168 level in the yesterday’s trading session. The crypto has squeezed in the second part of the yesterday’s session and closed much above some very important support levels. Price decreased a little today as well but remains to see what will happen till the end on the day because the rate could come back higher.

I’ve said in the last days that the corrective phase was a natural one after the impressive rally and because the fundamental factors have taken the lead on the short term. Personally, I still believe that Bitcoin will climb much higher and will reach fresh new highs in the second part of 2018. I’ve said in December 2017 that Bitcoin should reach at least the $30000 in 2018 because it remains very attractive despite the rumors that is a fraud, the current drop is only a consequence of the regulation talks. Personally, I’m not surprised by this drop, I’m in the Financial Markets for more than 7 years and I’ve seen aggressive drops on other assets.

I’ve added the Daily chart to show you what are the perspectives for the upcoming period. Bitcoin dropped much below the 61.8% retracement level and below the median line (ML) of the ascending pitchfork in the yesterday’s trading session but failed to close below these major support levels. Price has come back to retest the median line (ml) of the minor descending pitchfork, a valid breakout above it will signal a further increase on the short term, at least till the 50% Fibonacci level.

The rate could come back to retest the median line (ML) of the ascending pitchfork before will climb much higher. Right now is premature to talk about a larger rebound because it continues to be under massive selling pressure on the Daily chart.

You can see that has reached the lower median line (lml) of the minor descending pitchfork but failed to close on it or near it signaling an oversold. Technically, it was expected to climb towards the median line (ml), a valid breakout above it will confirm an increase towards the sliding parallel line (sl). I want to remind you that the perspective remains bearish on the short term as long as the rate is trading within the minor descending pitchfork’s body, but a valid breakout above the sliding line (sl) will bring us a bearish signal. A larger rebound could be confirmed only after a valid breakout from the descending pitchfork’s body.