Time to deal again with the Bitcoin. Previously I mentioned this instrument on the 19th of November, when the price was slightly above the 5200 USD. We had a fresh sell signal after the breakout of the 6000 USD support. Our analysis was spot on, the price fell like a rock!. It has been almost a month, did anything change in this matter?
I think that current low prices created the situation, where random people already lost the interest in this instrument but fans of the technology and professional traders are starting to look for a buying opportunity. In my opinion, we are not there yet and we should experience a further decline here. The most recent development, after the support on the 6000 surrendered was the descending triangle pattern (orange). In a downtrend, this kind of a formation is a very strong bearish factor. No surprise then that the BTC broke the lower line of this pattern and went down.
The new weeks starts with the test of the broken support as a closest resistance, so a very clean price action movement. The test is so far positive for the sellers, which increases the chances for a further slide towards the 2900 USD (blue). That is our mid-term target for this instrument. In my opinion, chances that we will get there are very high.
Bitcoin H4 Chart