The price has been falling since Sep 14th. As can be seen, the falling process was comparatively consistent and steep. However, this powerful trend stopped suddenly at the 1.362 level. This support point was foreseeable; we can see that the Stochastics and RSI had gone oversold earlier before the price touched the bottom. As we all know, the oversold condition was unstable; the price could have flipped at any time.
Now, let’s focus on the rebound part. The price already met the 50% Fibonacci level in 20 hours, which was fast, a little too fast. Also, we can see that the rebound already broke out the upper Bollinger Band. And the Stochastics and RSI entered the overbought area, which portrays an unstable condition, the price may fall again soon. In many cases the retracement can reach the 61.8% Fibonacci level, but that is supposed to be a mild and consistent process.
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