Bitcoin dropped sharply today and erased the last day’s gains. Price failed to reach and retest a dynamic resistance, so it could slip much lower in the upcoming hours. It remains to see what will really happen in the upcoming days because the rate is pressuring a static support, a rejection from here will send the rate much higher again. Bitcoin seems exhausted on the Daily chart, we’ll see what will happen because a failure to make new highs will signal another sharp drop.

Right now is premature to talk about a larger drop as long as the rate is located above some important support levels.

You can see on the Daily chart that the rate failed to reach the sliding line (sl) of the minor ascending pitchfork and now has come back and is pressuring the 38.2% retracement level. A valid breakdown will force the price to drop at least till the median line (ml) of the ascending pitchfork. Support can be found at the lower median line (LML) of the major red ascending pitchfork as well, only a valid breakdown below it will signal a larger drop in the upcoming period.

The perspective remains bullish as long as the rate stays above the lower median line (LML) of the major red ascending pitchfork. You can see that it has failed to retest the LML in the last attempt, but it could reach it now after the failure to increase towards the inside sliding parallel line (SL) of the major red ascending pitchfork.

It could be attracted by the confluence area formed between the lower median line (LML) of the red ascending pitchfork with the median line (ml) of the minor ascending pitchfork, it could turn to the upside from there again.  A valid breakdown through the mentioned confluence area will accelerate the sell-off.