As expected, Bitcoin hit new lows and seems like that this break was out of a triangle correction within a possibly extended wave 5. So be aware of a continuation lower, towards projected 3000 area, which can be the final destination of a five-wave cycle, where spikes and sharp reversals may occur. However, Bitcoin remains bearish as long as it’s trading below 6200 regions.
Only an impulsive five-wave rally would be an indication of a bullish reversal.
BTCUSD, 4h
On the 2h chart, we have a closer and better look at current fall from 4200 level. We can see a nice bearish decline in play, which looks impulsive and is now unfolding final stages of a wave iii. Wave three is usually the strongest and firmest waves, and once its fully develops, a new temporary pullback as wave iv may follow. Resistance for the final wave iv can later be seen near the 3500 regions.
All in all, BTCUSD can be ending and we may see some bullish reaction in the future. Also, strong support may be seen on the weekly chart of BTCUSD, where the 200 moving average indicates a reversal at 3000.
Let’s see, what happens.
Take care.
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