Bitcoin had been consolidating within a larger wedge since November 20th. Today it broke down and out of that wedge. It found support right on top of the prior support zone between $3,800 and $3,600. If price breaks below this zone, we could see a quick drop to at least $3,400.
This latest drop could be a bear trap. Shorts are outpacing longs by about 30%. If this gap gets much wider, we could see a massive short squeeze.
In today's video analysis I discuss, where price may go from here, key areas to watch and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
