Bitcoin was trading in the green at 42,802.22 at the time of writing above 42,190.82 daily low. The cryptocurrency was in a corrective phase after registering a strong rally. Still, the retreat could be only a temporary one before climbing towards new highs.
In the short term, it could test and retest the immediate support levels trying to accumulate more bullish energy. BTC/USD rose by 3.12% from today's low of 41,575 to 42,871.68 today's high. In the last 24 hours, the crypto is up by 0.90% but it's down by 2.52% in the last 7 days.
BTC/USD bounce back
Bitcoin retreated after finding resistance at the first warning line (wl1) of the Descending Pitchfork. As you already know from my previous analysis, BTC/USD was expected to drop after failing to stabilize above the channel's upside line.
It has found support at 41,967.50, and now it tries to rebound. Still, as long as it stays under the warning line (wl1), the pressure remains high.
BTC/USD outlook
The bias is bullish as long as it stays above the uptrend line. Personally, I would have liked the price to come back down to test and retest the uptrend line before developing a new leg higher.
A valid breakout above the warning line (wl1) could announce an upside continuation and new buying opportunities.
