Bitcoin is currently creating lower highs and lower lows, and a new lower high has been created at 12 061. This has led to a clear downward sloping channel being created as can be seen above.
Three possible scenarios
1. If Bitcoin turns up from here and take out the lower high of 12 061, the downward channel is broken and we will look to retest the high of 13 880 over time.
2. A Bounce from here could find heavy resistance at around 11 500 to 11 800 and get rejected from there to continue the downtrend with initial target to take out the low of 9614, and then break that to create a new lower low at around 8500 to 8800 over time.
3. A Continuation of the downtrend could follow immediately without a bounce, to test the current low of 9614 initially with a slight bounce expected there, and then continue downward to the target of 8500 to 8800
Three possible scenarios
1. If Bitcoin turns up from here and take out the lower high of 12 061, the downward channel is broken and we will look to retest the high of 13 880 over time.
2. A Bounce from here could find heavy resistance at around 11 500 to 11 800 and get rejected from there to continue the downtrend with initial target to take out the low of 9614, and then break that to create a new lower low at around 8500 to 8800 over time.
3. A Continuation of the downtrend could follow immediately without a bounce, to test the current low of 9614 initially with a slight bounce expected there, and then continue downward to the target of 8500 to 8800