This is my primary scenario at this point. Either it breaks to he upside and we test the $4.2k again, or we are going to drop first to the $2.3k and make the bottom.
After yesterdays wedge broke down, we now see what appears to be a symmetrical triangle forming, witch should lead to a recovery if it breaks to the upside, witch to me seems to be the most probabilistic outcome, since the RSI on the daily is currently at 16.
BTC seems to be finishing wave 5 of a falling wedge, if it's confirmed, can bring it back to the $6450 range.
All short and medium time frames are oversold, this indicator together with the falling wedge, seems to me a reversal (short term) might happen.
Declining volume confirms the ascending triangle in the making for the past two weeks or so, we should have a break in the coming days, volume will be the main indicator of the direction we break.
BTC seems to be making the B from the ABC bounce, and as we can see, it looks like it's forming a rising wedge to reach to B.
if BTC uses the shorts as fuel to go over the previous 7.5k lower high, it can become really interesting for the bulls. But for now, we have just another lower high on sight, witch should top at around 7k USD, the bulls need to be the one...
The triangle i previously shares might have a slighly different shape, in witch case, we are still in consolidation and will be in the next few days.
This is invalidated if 6.2k USD break down in the next day or so.
BTC seems to be working out a bigger triangle pattern, visible with 1D candles.
This could dictate the end of the bounce, and following the break the weeckly ascending triangle, forcing BTC to make a new lower low, or we can see yet another leg up to around 6.8k to 7k.
We should see a bounce in BTC, and depending on the bounce, if has follow through or not, will dictate the next stage of BTC, either bull or bear. In a weekly scale, BTC is developing a tightening pattern, so the consolidation to a higher low is expected.
I'm watching this wedge, that is a bearish setup but in this environment, with almost record high number of shorts open and, breaking this pattern bullish isn't a first for BTC.
![XBTUSD.P: No trade zone while price action inside the triangle [Update]](https://s3.tradingview.com/g/gc2VLPI8_mid.png "No trade zone while price action inside the triangle [Update]")
