Bitcoin's blow off top to descending triangle
I believe that Bitcoin is in a descending triangle that will break down soon. We have very low volume at this time and we seem to be starting to break down.
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I know no one wanted this to play out down but it did. Just like discussed yesterday we verified the descending triangle. We are headed down and it will get messy. I suspect it's possible to tag the .786 coming in around 22900 before starting wave 5. Bitcoin long is up but why hold the coming drop?
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Looks like we've started the break down early. All the dumps have come in at 2am if you look closely so whales are unloading while they tell everyone else "hold onto your bags we're going to the moon" I expect it's possible to get another pump up to resistance line of triangle but last pump just took us to the .5 fib it was so weak. RSI is weak but has not put in a bottom by any means. MacD histogram still in the red with no signs of positive momentum. Hold onto you hats this baby is going down the bull run of 2021 is over!
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This is not the bottom we have further to fall, much further. Look at volume and RSI, they don't show bottom by any means. Right now retail is realizing they have been dumped on but we have not seen a true capitulation.
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Update, They tried to drawl a pennant to keep retail in the game then dropped it to a very large descending triangle. I had to make the descending triangle larger to accompany the new drop. RSI and volume are not showing a bottom. It could take 60 days to see the real bottom and it's looking like a 100% retrace is on the table.
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selling continues as we near the .618. I think we need to start looking at .618 fib from covid19 bottom to 42k top, it's coming in around 18.5k while the other .618 is coming in around 26k. Interesting how the long term line of support comes in near the 26k .618 as well.
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Looks like we just found some old support from the earlier trend line. This would mean that the pullback was only 32%. This would be a really shallow dip compared to bitcoin's history. I still feel like we will sell off for a while longer but I will be watching this long term support line
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I don't think this pump did anything but make the descending triangle larger. It still made a lower low but note that the daily MacD cross is coming tomorrow and this could be ppl getting positioned. I have two questions though, Where's the volume and why is everyone selling into the pump?