In my previous post on Bitcoin, I said that there is two situations that can occur. The first was that Bitcoin was going to make higher lows, forming an ascending triangle for a breakout at 10k. The second is the descending wedge pattern and the price ending up at 6000.
Two days ago when I did that update the price was hovering around 9300. As of now, the price is currently at 8209. The sentiment has changed, favoring the idea of a descending wedge forming and for the price to hit 6000 soon.
As you can see from the chart I drew an ABCDE correction. We are heading towards C right now, and if we break below 8000 we should see some support at 7500 (C) which is also located at the lower trendline.
I do expect the RSI to be very oversold on the 4-Hour at C, another reason for a bounce at that level.
If this occurs, D would be the bounce back to 8000, and then a sharp turnaround toward 6300, the apex of the wedge.
Conclusion: I said in the last update that we need to see more price action before I am biased on one situation occurring from another. Now that Bitcoin is dropping towards 8k though, I am bearish as of now for the short-term.
Disclaimer: (I am not a financial advisor, do your own due diligence when investing in cryptocurrencies. This is just my speculative opinion.)
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