Welcome, friends, to this update analysis on Bitcoin! Let's jump right in! Looking at the four hour BTC -4.95% chart, we can see that a breakdown from the bear flag has occurred, and BTC -4.95% is now falling straight to the very important uptrend support level (green dashes.) This rising support level is important, because it originates at the beginning of the rally, which sent BTC -4.95% to the all time high. Therefore, a break of the green dashed trendline , would signal a longer term trend reversal, and it could have a very negative psychological impact on BTCs 2.34% long term holders. I do think BTC -4.95% could catch a bounce off of that level. I'm sure there are plenty of buyers out there, who have noticed this simple rising trendline , and have placed buy orders around $8,600. As you can see, the trendline also corresponds with the 78.6% retrace, which increases the support of that level. You can see that the current candle is already trying to form a small hammer , as buy orders begin to execute. The question is, will it actually hold? I'm not so sure that it will. Based on my last post, "Bitcoin Sets Up For 100% Retrace — Fractal Mastery," you probably realize that I value fractal relationships over trendlines . However, I will always wait to see what happens, before actually placing a trade. Confirmation evidence, is the key to success in this game. It is entirely possible, that BTC -4.95% catches support off of the rising green trendline and rockets to the moon. However, that doesn't align with the overall technical picture of this chart, or the fractal implications of the patterns it contains. Undoubtedly, it is an important level to watch. If the green dotted trendline falls, panic selling will most likely consume BTC -4.95% , and the entire crypto space in general. As I stated earlier, buy orders are sitting just above the green trendline , but sell orders (probably a massive amount of them) await below. If the green dashed trendline falls, the bottom of the downtrend channel , and my long awaited, heavily criticized downside target (around $5,650) will be in BTCs 2.34% sights. Watch the green dashed trendline . It's do-or-die.
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This information is not a recommendation to buy or sell. It is to be used for educational purposes only.
It's getting there
The situation is very bad.