Bitcoin has changed little today, but maybe only because it has reached a potential downside obstacle. Maybe a temporary rebound will be natural after the impressive sell-off, but it remains to see if the bulls will have enough energy to push the rate a little higher.
Technically, the perspective remains bearish, so it is somehow expected to drop further despite a minor rebound. I’ve said in the previous report that we may have a minor bullish movement because the rate could try to test and retest the broken dynamic support.
Bitcoin plunged as expected after the aggressive breakdown below the 6000 psychological level and it has ignored the median line (ml) of the descending pitchfork. The drop was natural after the failure to make a valid breakout above the 50% Fibonacci line of the descending pitchfork.
It has reached the 4210 low today, but it continues to stay near the WL2 of the former ascending pitchfork. Price could come back from here or after a further drop. Personally, I still believe that it will increase a little to retest the broken median line (ml) and maybe the WL2 before it will drop further.
I’ve told you in the previous weeks that a valid breakdown below the median line (ml) will lead the rate at least till the downside 50% Fibonacci line. Only a false breakdown below this dynamic downside obstacle or a failure to reach it will announce a potential rebound.
A potential rebound will come only if the rate will increase sharply and will stabilize above the median line (ml) and only if the rate will make another false breakdown below the median line (ml) after the potential bullish momentum.
A drop towards the 3000 psychological level it is still favored at this moment. A larger upside movement on the long-term could appear if the rate will stay above the downside 50% Fibonacci line of the descending pitchfork. A false breakdown below the 50% line followed by another false breakdown or by several failures to reach it will announce a bigger upside movement on the long-term