Market likely to retest previous trendlines and resistance 9/24/2014

Short-term trend is up. A 10% reversal off of a double bottom is a good indicator. Looking at the 4 hour chart, we are likely to retest previous lows and downward trendline. In addition, the double bottom that was formed also points to this area; a lot of confluence. Hence I think it is likely we are going to retest it at some point. Now, that does not mean the market won't have some volatility. The nature of bounces is that it is choppy and hard to predict. A bounce's price targets, we can use fib-retracement or previous resistance to predict, but not time duration or price action. Elliot wave theory also agree with this since the retracement waves have so many variations.

We are pulling back from the recent bullish rise. But if you look at where the price is at in relation to the recent rise, price is hovering at the highs of the big green bar. If the short term is bearish, then we would have retraced a more significant percent of the rise.

Many people fear that price will slowly and painfully drift back to original levels, which happened a lot before. My experience is that, a bounce of this magnitude is the chart's way of saying, 400 usd/btc level is rejected for now.