I just made this one for a friend to calm give him some direction in what looks like a free fall on first sight.
I want to point out that there is always the possibility of a further decline, but since currently at $3400 we are close to the lows around $3200 (oh my god thats actually 6%!) chances are high that we would retest the current support level on short notice in the unlikely case that we fall trough.
I usually trade harmonic patterns and don't see a new one start right now before we hit $3000 which is the stop loss for a bigger one that is currently running and completes with a retest of the old support (turned resistance) at around $5800. I don't want to be too ambitious so I think taking profit somewhere around the lower edge of the cloud is reasonable.
Before the capitulation candle (-30% in a single day and complete rebound same or next day) is in, we have not seen the bottom. But that can take some more weeks or months and many retracements to the mean.
Buy on support, sell on resistance.
I want to point out that there is always the possibility of a further decline, but since currently at $3400 we are close to the lows around $3200 (oh my god thats actually 6%!) chances are high that we would retest the current support level on short notice in the unlikely case that we fall trough.
I usually trade harmonic patterns and don't see a new one start right now before we hit $3000 which is the stop loss for a bigger one that is currently running and completes with a retest of the old support (turned resistance) at around $5800. I don't want to be too ambitious so I think taking profit somewhere around the lower edge of the cloud is reasonable.
Before the capitulation candle (-30% in a single day and complete rebound same or next day) is in, we have not seen the bottom. But that can take some more weeks or months and many retracements to the mean.
Buy on support, sell on resistance.