Bitcoin increased and resumed the minor rebound, but is still premature to talk about a larger upside at this moment as the rate is still located below some very important resistance levels. Price has come back above a broken dynamic support, the breakout needs confirmation before we can say that we have a further increase.

I’ve said in the previous articles that we may have a rebound in the upcoming weeks if the rate will stay above the 7568 static support. Price has retested this level and now seems motivated to jump higher on the short term.

Personally, I believe that the rate could move in range on the short term before will start a larger upside movement, it needs to capture more bullish energy. Bitcoin is trading in the green right now and is almost to reach another upside resistance, but it could pass above this one as well.

You can see on the daily chart that the rate has found temporary support above the 7778 static support and now has managed to jump above the 50% Fibonacci line (ascending dotted line) of the minor ascending pitchfork. Resistance can be found at the 23.6% Fibonacci level, however, a breakout above this level will send the rate at least till the median line (ml) of the minor ascending pitchfork.

The failure to approach and reach the lower median line (lml) of the minor ascending pitchfork signals an oversold and a potential upside momentum. A broader rebound will be confirmed only after a valid breakout above the 50% Fibonacci level and above the sliding parallel line (sl1) of the minor ascending pitchfork.

A further drop will be confirmed only after a breakdown below the 7568 static resistance. Price is somehow expected to increase again after the second failure to retest the major downtrend line.