Bitcoin | Breakdown! Massive Drop Coming Soon? [BTCUSD]
Finally some action!
So, Bitcoin decided to break out of its bearflag and retest the lower trendline of the triangle.
The volume was pretty heavy on this drop with good follow through, indicating more downside.
RSI
The RSI on the 4 hour is really oversold right now, so I don't think we will break support immediately.
We will most likely see some kind of consolidation like a rising wedge or another bearflag, before another drop happens.
Short Entries
A good short entry would be somewhere around the first and the second Fib level.
Bulls / Stops
If Bulls want to turn this around, they really need to get above the 0.5 Fib / $6450 level again. If they don't, it's not looking too good.
This is also where I'd put my Stop if I where in a Short position.
Targets / Support
Next support level is the area around 5,8k, which has held up pretty nicely so far.
Therefore, this might be a good target for taking profit.
So, Bitcoin decided to break out of its bearflag and retest the lower trendline of the triangle.
The volume was pretty heavy on this drop with good follow through, indicating more downside.
RSI
The RSI on the 4 hour is really oversold right now, so I don't think we will break support immediately.
We will most likely see some kind of consolidation like a rising wedge or another bearflag, before another drop happens.
Short Entries
A good short entry would be somewhere around the first and the second Fib level.
Bulls / Stops
If Bulls want to turn this around, they really need to get above the 0.5 Fib / $6450 level again. If they don't, it's not looking too good.
This is also where I'd put my Stop if I where in a Short position.
Targets / Support
Next support level is the area around 5,8k, which has held up pretty nicely so far.
Therefore, this might be a good target for taking profit.
Comment:
The initial bounce only reached the first Fib level, therefore I think we might be up for more downside.