Bitcoin got rejected at our resistance trend line. This is not a good sign for bulls. However price form since the lows has many impulsive characteristics and this could be the start of a new up trend. What Bitcoin bulls want to see next? They want to see a higher low and an upward reversal that will eventually break above the green trend line resistance. Bitcoin bulls do not want to see price break below the 61.8% Fibonacci retracement support of the latest rise.
The shallow bounce towards the 23.6% Fibonacci retracement was the first sign that the upward bounce was weak and a reversal lower would soon follow. I warned you about it on time. I expect new lows here. A break above the recent high will open the way for a bounce higher towards the 38% Fibo level.
Corrective price action here as well. We also see a potential head and shoulders pattern being formed. Neckline support is at 788$. Break below it on a daily close basis and we have short-term target around 570$.
The only one from the 4 that might have limited downside left. Price was expected to pull back towards the 61.8% Fibo level and back test the broken wedge pattern. It has only retraced to the 38% Fibo level. This is a sign of strength. Support is at 194$ and next at 183$. Break below them and we are off towards 160$. Resistance is at 251$. Break the highs and we can see the 400$ level.