Bitcoin has increased significantly today and has managed to jump above a very important dynamic resistance. We’ll see what will happen in the upcoming period because we still need a strong confirmation that the rate will really start an impressive upside movement.
As you already know, the crypto market will increase if the Bitcoin will start to increase and to approach new highs in the upcoming period.
For me, it is still too premature to say that we’ll have a major upside movement in the upcoming period. This could still be only a temporary rebound before it will drop again.
You can see that the rate has passed above the median line (ml) of the descending pitchfork and now is trying to approach and reach the 350% Fibonacci line of the former ascending pitchfork. A valid breakout above the median line (ml) could be the first signal that we may have another rebound.
Bitcoin has failed to reach the 3215.2 and the 2980.4 static support levels, signaling an oversold. I’ve told you in the past that we need a strong consolidation to be able to consider going long on Bitcoin.
Personally, I would have liked to see a false breakdown below the near-term support levels before a potential rebound. It would have given us a great chance to go long on Bitcoin again. Right now is premature to say if the Bitcoin will really jump towards 6000, 7000 levels. It could only retest the 350% line and maybe the upside 50% Fibonacci line of the descending pitchfork before it will drop again.
Technically, this rebound is somehow understandable because the rate has failed to approach and reach the downside 50% Fibonacci line of the descending pitchfork and now it has reached the median line (ml) after a long time.
Maybe we can go long if the rate will come back and it will test and retest the median line (ml) or if we’ll have a false breakdown below this line.