I wrote about this being a bull trap from $10k+ and drew the downwards trendline you see on the chart. Look's like I was dead on for now! (Check out that idea in the link to related ideas).
But what comes next?
I still think BTC could go back to $4.000-5.000, yes! I think the entire market is overinflated at this stage and that a return to mean is for the better - longterm. I am very bullish long term, don't get me wrong. But for now, we will go down.
However, we have a few levels to watch before we can confirm a bigger downtrend. Looks like we are sitting right on the orange trendline which goes back to previous levels from August/September. That will be broken though. A very interesting level to look at: $8900 - $9000 level!
WHY?
Because this represents:
1) the .50 fib retracement which BTC likes to follow
2) A possible (major) inverse head & shoulders forming - left shoulder from $13k high to $10k and back to $12k, head being from $12k to the low at 6k to latest high of $11.8k and a new shoulder forming from that high to the $9k level - with a possible finish and break of neckline at a new run to $12k.
So WATCH the $9k level! If it bounces from here and goes back up towards $12k, we could see a major break to the upside with a potential target of $18k if we break the neckline of the inverted H&S!
If the $9k level breaks to the downside, I am positive we are going back $6k or lower.
Disclaimer: I am currently holding fiat and waiting for entry. This is all my opinion, do your own DD, this is not financial advice.
Let's see what happens, happy trading!
But what comes next?
I still think BTC could go back to $4.000-5.000, yes! I think the entire market is overinflated at this stage and that a return to mean is for the better - longterm. I am very bullish long term, don't get me wrong. But for now, we will go down.
However, we have a few levels to watch before we can confirm a bigger downtrend. Looks like we are sitting right on the orange trendline which goes back to previous levels from August/September. That will be broken though. A very interesting level to look at: $8900 - $9000 level!
WHY?
Because this represents:
1) the .50 fib retracement which BTC likes to follow
2) A possible (major) inverse head & shoulders forming - left shoulder from $13k high to $10k and back to $12k, head being from $12k to the low at 6k to latest high of $11.8k and a new shoulder forming from that high to the $9k level - with a possible finish and break of neckline at a new run to $12k.
So WATCH the $9k level! If it bounces from here and goes back up towards $12k, we could see a major break to the upside with a potential target of $18k if we break the neckline of the inverted H&S!
If the $9k level breaks to the downside, I am positive we are going back $6k or lower.
Disclaimer: I am currently holding fiat and waiting for entry. This is all my opinion, do your own DD, this is not financial advice.
Let's see what happens, happy trading!
