RSI and price are both fixing to break below key levels. A break below the trend line can lead to major downside in the short term. Especially if we end up below 35k.
Ichimoku Cloud on the daily is leaning bearish. Price has broken beneath the cloud as has the lagging span. Any more down days and the moving averages and kumo are soon to follow.
Weekly chart forming a bear pennant. A similar flag pattern can be seen on the daily chart. Huge selling pressure the past few weeks leaving large upper shadows where sellers have been overwhelming buyers.
Here I want to point out the weekly RSI 45 period weighted moving average (WMA). It is currently sitting at 50. Historically, breaks below 50 have signaled bearish price action for 10 weeks to over a year. The shortest one being related to a black swan event at the start of the pandemic.
