Bitcoin (BTC)
Market Cap. $152.98B
Circulating Supply: 17.01M BTC
Max Supply: 21M BTC
Volume (24h) $8.43B
BTC/USD dropped aggressively today and resumed the yesterday’s bearish candle. The crypto failed to take out a crucial resistance level and Bitcoin value now could drop significantly in the short term. Right now is premature to talk about a larger drop in the short term because this could be only a temporary drop. Price could try to accumulate more energy before will really start a larger increase.
I talked about the Bitcoin two weeks ago (Bitcoin long, the most expected setup) and I’ve signaled a minor drop in the short term before the rate will really start a larger upside movement. I’ve said that the rate could come down after the breakout above the WL2 of the ascending pitchfork and could retest the lower median line (lml) or the outside sliding line (sl).
BTC/USD increased, but has failed to make a valid breakout above the 50% Fibonacci line (ascending dotted line) and above the 23.6% retracement level.
A valid breakdown below the inside sliding line (sl) will lead the rate towards the 350% line and towards the lower median line (lml). I’ve told you that we may have a great buying opportunity from the lower median line (lml) or after the retest of the outside sliding line (sl).
Personally, I was expecting a drop from 50% Fibonacci line or from the median line (ml) of the ascending pitchfork because was hard to believe that we’ll have a larger upside movement towards the 15000 level without a corrective phase.
Conclusion
The conditions haven’t changed too much. We’ll have an excellent buying opportunity if the rate comes down to test the lower median line (lml) of the sliding line (sl). You could go long also if the rate makes a valid breakout above the 50% Fibonacci line and above the WL3.
The first upside target will be at the median line (ml), the next one at the upside 50% Fibonacci line and a crucial one at the upper median line.
©Forex.Academy
