What the chart above illustrates is a repeat of the wave construction that previously led to the sharp sell-off in Bitcoin (BTC). Let's go through the sequence of events together in a nutshell:
(1) Bitcoin price forms a first upward wave that fails just before the short-term resistance band and forms another trough (2)
(3) The second upward wave fails again at the resistance band and the rebound pushes BTC to a slight buying interest for the first time, which is shown by a small increase in volume (K). The result is a very small accumulation phase (4)
(5) The Bitcoin price goes through a short distribution phase and is sold off steeply again.
The result of this sequence of events could lead to a secondary test of the previous low at just above $42,000. That is, of course, if the events will repeat.