Bitcoin dropped as expected after the temporary rebound. I’ve told you in the previous days that technically, the rate is still expected to drop despite the minor bounce back. Price has posted humble gains today, but most likely it will drop further in the upcoming period.
It approaches a very strong dynamic support, we’ll see how it will react when it will reach this line because a false breakdown could signal a potential upside momentum.
I will show you later a bullish scenario and how the Bitcoin could increase again in the upcoming weeks, but only if it will respect my scenario.
You can see on the Daily chart that the rate has failed to reach and retest the median line (ml) of the descending pitchfork, so we may have a significant drop. I’ve told you in the previous report that a failure to reach the median line (ml) or a false breakout will send the rate down very quick.
It approaches the 350% Fibonacci line of the ascending pitchfork, which it could represent temporary support. Personally, I believe that the rate will take out this dynamic support if it will reach it.
Only an aggressive false breakdown will send the rate higher again. However, a failure to reach the 3215.2 will signal a potential upside movement. Also, a false breakdown below the 2980.4 static support and a failure to reach the downside 50% Fibonacci line will send the rate higher. We’ll have a further drop if the rate will make a valid breakdown below the mentioned static support levels and if the rate will reach the 50% line.