SHORT BTC/USD - Price could move down to around $5000.
I see Bitcoin in a strong descending channel , marked in yellow on the chart. Price was consolidating at the $10000 resistance level for a while, unable to break above. The $10K resistance level was also in alignment with the top of the long-term descending channel line.
Current price action has also been in a short-term ascending channel (marked in green) within' the long-term channel. Last night I was watching current price action on the 4h chart. We saw a break in market structure (yellow box) towards the downside, a retracement to the 0.5 Fibonacci level, price rejecting the 0.5 Fibonacci level multiple times, price then moving downwards breaking the short-term upward channel, creating new lower lows.
Down the road we could see price re-test the bottom of the descending channel at around the $5000 level. Current price action looks very similar to what we've seen with the previous short-term upward channel (marked in green) towards $10500, price breaking that channel, then down to around $3900.
Short-term, we could see price re-test the support levels marked on the chart marked in light blue/cyan color.
Current price action has also been in a short-term ascending channel (marked in green) within' the long-term channel. Last night I was watching current price action on the 4h chart. We saw a break in market structure (yellow box) towards the downside, a retracement to the 0.5 Fibonacci level, price rejecting the 0.5 Fibonacci level multiple times, price then moving downwards breaking the short-term upward channel, creating new lower lows.
Down the road we could see price re-test the bottom of the descending channel at around the $5000 level. Current price action looks very similar to what we've seen with the previous short-term upward channel (marked in green) towards $10500, price breaking that channel, then down to around $3900.
Short-term, we could see price re-test the support levels marked on the chart marked in light blue/cyan color.
It's a possibility that we could see some more consolidation around the channel before moving down to the significant $8500 support level. If price breaks the $8500 support level then that is a clear bearish sign we're moving closer to our $5000 target.