The 4 Hour Intraday Chart is still showing a bullish bias within the Wyckoff Distribution range. Confirmation played out yesterday as Bitcoin first fell to the $9,600 support level (in an epic shakeout) then moved higher to the high end of the range, topping out at $9,940 before turning lower to $9,440.
4H Intraday Chart
The initial price projections (Based on a Point and Figure vertical count) on the 4 Hour chart show BTC should have targeted $10,680 on this rise, but upper trendline on the 1D held, reversed the advance at $9,440, and now appears to be setting the stage for a potential head and shoulders reversal.
1D Chart
One significant item to take note of is the column of O’s formed on the last drop to $9,440. This did two noteworthy things: 1) it created a double bottom at $9,460 (which is a bearish pattern in Point and Figure), and 2) signaled a sell on a double bottom breakdown when it pushed further to $9,420.
Based upon the recent entry into a Wyckoff Distribution phase, the 1D trendline acting as resistance on the daily, and the 4H Intraday Chart activity signaling a double bottom breakdown, I would imagine a retest of the double bottom breakdown at $9,420 should happen in the near future, with a potential further breakdown. The target price of this breakdown would be $9,920 - ((24 Boxes * 3 Box Reversal * $20 per box)*2/3) = $8,960.
You can follow me and keep up to date on Tradingview as well. I trade under the handle FOFAgent1 at tradingview.com
