8000$

Morning guys,

Despite that few days BTC spends in tight consolidation, but the sell-off of previous week was strong. And this makes us to turn from hypothetical consideration of reverse H&S pattern on daily chart to reality.
Since BTC definitely shows downside acceleration and broke strong support area of 9K level almost without any respect, we suggest that currently it is a temporal pause before downside continuation.

Our primary level to consider is 8K major daily 5/8 Fib support which agrees with major 1.618 (XOP) target on 4H chart. This is vital point for H&S pattern as it forms the bottom of the right arm. If BTC will turn up from somewhere - this should happen there. Otherwise, failure of H&S will break totally bullish scenario and we will have to change our view into bearish. But it is a bit early to talk about it...

In few days we do not exclude minor pullback, somewhere to 9K area (this could become background for scalp traders), but then we still expect downside continuation. Our primary target is 8.0K area where we consider long entry.