Bitcoin Upside Still Uncertain

Bitcoin has rallied on the short term after the failure to stabilize below the $6000 psychological level, but the price seems exhausted and it could come back to test and retest some support zones before it will climb higher.

BTC/USD is still under pressure, despite the aggressive rebound, so it could decrease a little in the short term trying to recapture more bullish energy. Personally, I would like to see a strong consolidation before the price will try to develop a broader upside movement.




The false breakdown below the lower median line (LML) of the red ascending pitchfork has signaled a potential reversal, but a larger upside movement is far from being confirmed. BTC/USD has found a temporary resistance at the 23.6% level and at the inside sliding line (sl) of the descending pitchfork, now it could decrease to test and retest the $6000 level and the lower median line (LML) again before it will resume the bullish movement.

Bitcoin could increase further if it stays above the $6000 psychological level and above the lower median line (LML), a retest of these levels will give us a great chance to go long on this cryptocurrency. Personally, I would like to see a consolidation, a sideways movement, above the $6000 level because is hard to believe that it will register a major increase without a strong consolidation.

Technically, the false breakdown below the median line (ml) of the descending pitchfork and below the lower median line (LML) could signal a potential increase on the short term towards the 38.2% level and towards the 50% Fibonacci line of the ascending pitchfork (ascending dotted line). The Bitcoin price could be attracted also by the upper median line (uml) if it will close and stabilize above the sliding line (sl) and above the 23.6% level.

Only a consolidation/accumulation above the $6000 level, or another false breakdown below this level and below the LML will really announce a major leg higher on the medium to the long term.

Conclusion

BTC/USD maintains a bullish outlook as long as it stays above the $6000 level and above the lower median line (LML) of the red ascending pitchfork. The bearish pressure is high below the 23.5% level and below the inside sliding line (sl - descending dotted line), it could decrease again if it fails to take out these resistance level. However, a valid breakout above the sliding line (sl) and above the 23.6% level will validate a further increase towards the 50% Fibonacci line and towards the 38.2% ($9319) level. The major upside target, resistance, remains at the median line (UML) of the red ascending pitchfork.

It would be great if the price will make consolidation and another false breakdown with great separation below the lower median line (LML) and below $6000 level, this scenario will bring a great buying opportunity and it will signal a potential increase towards the median line (ML) of the red ascending pitchfork, way above the $10000 psychological level.

So, a major upside movement will be confirmed only after a valid breakout above the upper median line (uml) of the orange descending pitchfork and above the 50% Fibonacci line (ascending dotted line). A Bitcoin important increase, upwards movement, could be invalidated by a valid breakdown below the lower median line (LML) of the red ascending pitchfork. You should know that a valid breakdown below the LML will validate a further drop within the descending pitchfork’s body, if this scenario will take shape, BTC/USD could drop below the $3104 static support.