BTC has been extremely irrational with this break down, and is showing very little reasoning behind its moves. Is our retracement bounce over due?
Currently, the price has just shot straight downwards without any proper retracements upwards, which is very uncommon. Even our indicators are still showing a hint at a bounce. They've been showing us this and its only been getting stronger and stronger each move downwards. I'm still sticking to a nice bounce coming. We are also very close to hitting the measured move out of the descending triangle at $2974. Could we hit that first before retracing? Sure. At this point nothing is off the table. But when we hear $1100 dollars and it will capitulate right now, I strongly doubt it.
The only thing BTC seems to be obeying at the moment is this descending channel its been in for a week. Price is currently hovering on the heartland of the channel with price action consolidating into a symmetrical triangle within the channel. Yep, another decent move is coming. My guess would be we either hit the $2974, which would lead to our bounce we're looking for, or we break up out of it and break out of the downtrend and lead us to a very nice upward move. After that, we could see a much needed relief bounce, maybe even to 5K, and then accelerate downwards again. That seems to be our only two options.
We'll see how this plays out. We are currently below all the MA's and it will take a lot of force to give us this break out upwards out of the triangle, over the channel, and over MA's.
Hope this helps!
