BTC/USD - At critical level, can $55k hold us? If not, danger! ⛔

BTC dropped 15% yesterday on the news the the US Department of Justice was investigating some institutions using crypto to launder money or perform fraud... but that is just speculation.

The price action is clear, we broke down from this ascending wedge in dotted lines. However there are some good news related to this recent drop, lets see if this maintains true in the following days:

1. We seem to have painted a HIGHER LOW... this is BULLISH. :)
2. The support at $55k was pierced but was quickly pushed back up. This is BULLISH.

If we draw a curve touching the support and resistance levels as presented by the yellow curves we seem to have closed the daily candle just above. If we manage to maintain price levels above this line and the $55k support line indicated by Fibonacci 23.6, we will be looking SEXY. :D

The next few days are CRITICAL to make sure we can sustain price above these key levels, if we fail and breakdown below these levels then the bearish case will intensify. But that is still not the case. We will revisit the chart if that happens.

For now, I remain bullish since this price action gives us some hope we can maintain the current level. If we break under $55k then my bias may turn bearish, to be seen.

My long term view is still very bullish on BTC.

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