We have been in a falling wedge since June, but there is another line segmenting the pattern which has proven to offer good support multiple times previously... and now it has proven for the third time to also work as strong resistance.
My prediction from here? BTC will go back down to the Fib golden retracement level, which near enough coincides with the $7000 psychological level; then potentially further back down to $6500 and eventually back to the weekly 200 Moving Average around $5000.
This is incredibly positive for crypto because we know 90% of altcoins are either scams or incapable of delivering on what they promised and are rapidly running out of funds. Meanwhile the money in crypto is being dispersed between too many projects. A drop down to 5k (or even better, back to 3k) would help kill off the altcoins that are actually worthless and help concentrate where in crypto the investment should go (i.e. working projects, or at least those that follow the Lindy Effect). Essentially we need to stress test the crypto world and the sooner the better.
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And just like that, after a short period of support, we’ve fallen back through and there are early signs this line will be providing resistance once again.
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The trendline (which aligns with the 4 hour 21 EMA) is still holding strong. I feel the bears are in control here and we'll soon be back in the 6k zone.