A couple of days ago, I made an analysis on the potential near term moves of Bitcoin. In the analysis below I argued that we could either see a head an shoulders pattern emerge, or that the orange resistance line would hold, causing a new potential sell-off.
Well, the sell-off is exactly what we're seeing here. Hope you're running some shorts!
Currently, we're seeing BTC see a minor period of consolidation around the 32.5k support level. This support area could hold for the near future, but overall I'm quite bearish. I think we're going to visit the red area of support again, which ranges from 31k to 30k.
In case the red area of support holds, we'd be seeing the continuation of the bearish triangle pattern. Classical theory suggests that a bearish break out would be expected after the triangle is complete, which would lead to a further sell-off of Bitcoin, potentially targeting 25k.
Things are looking grim for the coming days.
Long-term, I'm still bullish for this market. However, it will take a while to get there.