The bulls failed to break 7400-7600 area that was strong resistance from wave #1 that I've been calling in earlier charts.
Entered the last #5th wave down and still in the falling wedge that is pretty bullish pattern.
There are plenty of scenarios to realize before the bulls return to the market, but I've selected the two most probable scenarios to share with you.
Main scenario:
The drop will reach at least 6640 level, then insignificantly retrace and another drop will com as 2 waves down all the way to 5700-6000 area. It may even test the falling wedge with a wick breaking it as a bear trap. Then the buyers will activate at last breakout from the falling wedge with enough volumes and sentiments to break the downtrend.
The TD indicator gives us a strong bearish sentiment by showing a small retrace and now back to bearish trend, so we should keep in mind the following:
If bulls fail to protect the bottom, we should be ready for the price to reach $4600 level and forget about a new uptrend for months bringing a long-term crypto-winter.
Alternative scenario:
Once the current 5 waves structure completes to ~$6600 area, the bulls take control and bring the price back above $7350 level. It will mean, the downtrend is over, the bottom is confirmed and now we'll see a retrace to at least $11-12K area.
Hoping for the bullish sentiments to return to the market soon!
Entered the last #5th wave down and still in the falling wedge that is pretty bullish pattern.
There are plenty of scenarios to realize before the bulls return to the market, but I've selected the two most probable scenarios to share with you.
Main scenario:
The drop will reach at least 6640 level, then insignificantly retrace and another drop will com as 2 waves down all the way to 5700-6000 area. It may even test the falling wedge with a wick breaking it as a bear trap. Then the buyers will activate at last breakout from the falling wedge with enough volumes and sentiments to break the downtrend.
The TD indicator gives us a strong bearish sentiment by showing a small retrace and now back to bearish trend, so we should keep in mind the following:
If bulls fail to protect the bottom, we should be ready for the price to reach $4600 level and forget about a new uptrend for months bringing a long-term crypto-winter.
Alternative scenario:
Once the current 5 waves structure completes to ~$6600 area, the bulls take control and bring the price back above $7350 level. It will mean, the downtrend is over, the bottom is confirmed and now we'll see a retrace to at least $11-12K area.
Hoping for the bullish sentiments to return to the market soon!
The fall continues with the main target identified at $6000 (at least).
The market dump is systematic, with even no need of FUD until the bears targets/goals are reached. And who knows what is their goal?
This time, I don't have an alternative scenario, as the EW structure clearly shows the development of wave #3 of 5 down.
In most optimistic scenario, the price will find the bottom around 5700-6000 area.
While it may continue falling to 4600 area, breaking down the $100bln asset class limit.