The recent bearish breakdown has sent the stoch rsi to the bottom range but with the RSI not yet in oversold conditionas there's likely still more room to fall and the chart is forming a bit of a potential head and shoulders pattern on the 1hr chart. If the head and shoudlers is triggered it will drop us to to the 8,000s so keep an eye out for that...plenty of head and shoudlers patterns have failed to trigger so there's a chance this could be one of them but after the recent death cross on the 4hr I would not be surprised one bit if this triggers. I still feel like the lowest we would possibly dip is $7350 but think 7700-8100 is more likely...and below that thee 7500s seem liek a good rebound zone as well. The ascending grey trendline that has acted as a major support zone in the past is sitting right where the drop target of the head and shoulders pattern ends so it very well could be what finally bounces us back upward and continues the bull run. Choose wise limit buy zones and maintain enrves of steel and you will likely just accumulate more btc during this drop.
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click play on the chart above and you'll see that the head and shoulders was triggered just as I was warning about.
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As you can see the price stopped falling right at the price drop target and is now consolidating. the ascending grey trendline that has proven strong support in the past and also gave us our bounce up from the adam bottom in february as well as the smaller adam fractal in september once again provides strong support here. Hard to say whether or not this support line will hold but there is a very large buy wall of almost 400 coins lined up on the 8,000 psych support zone on gdax alone so hopefully if this breaks under then the psych support of 8k will be enough to rebound us back upwards...If not there is potential of us triggering a much larger head and shoulder pattern. . .hopefully that doesn't come to fruition.
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We are at a pivotal point where we pretty much must bounce upward from here to prevent triggering this h&s pattern which would drop us into the 6000s: s3.amazonaws.com/tra...shots/e/e3zOjksW.png Thanks to @whoisthelorax for bringing my attention to this one.
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The rebound up off the grey ascending trendline came at a crucial time and at least for now we are avoiding triggering the bigger head and shoulders pattern...came awfully close though: s3.amazonaws.com/tra...shots/4/4623rfHU.png Let's hope the rebound continues.