There are a couple different paths BTC could take right now. This could be the bounce back as it almost hit perfectly on that .382 retracement meaning we already saw the worst of the pull back. The next is it could be making a corrective flat pattern which will result in another downward move. That downward move could take us all the way down to the yellow trend-line on the bottom however, I find that the most unlikely of scenerios. I would wait for BTC to play out a little more as it is difficult to see what this is going to do right now. So sitting on the sidelines is the best move right now.
The long-term picture of BTC however, is more upside I think we have seen the bottom of BTC for the time being and should see a healthy rally. If you follow the current events throughout the markets, the major drops in BTC earlier this year and late last year were all caused by the Mt. Gox trustees selling massive amounts of BTC at specific periods of time causing massive drops in the markets. Just like the stock market the cryptos are manipulated and the one's in control will try to keep the price of BTC as low as possible for as long as possible. When that money ($400 million) gets paid back to the people who lost it in the Mt. Gox hacking I would assume that a large amount of that $400 million will be re-invested into the cryptos so another massive surge should be coming later this year.
RE: Trading Update BTC - March 22nd