BTC/USD - Time to pay attention! Market structure changing. ⛔

Yesterday BTC fell under a key support level that has held since December 2020. This break, especially if we have continuation and we fall towards 50k will confirm we just had a significant market structure change. Unfortunately the change is towards a bearish outlook, at least for the short/medium term.

As you can see on the chart, BTC made higher highs, however each time the distance and momentum between the highs decreased (see yellow arrows on price). This was a very clear WARNING sign. Moreover, we created a BIG bearish divergence between price action and the indicators on larger timeframes like our 3D view here.

What do we have here:

1. Decreasing volume on each new ATH since Dec 2020 = bearish
2. MACD crossed on the negative side on 1D, 2D and 3D = bearish
3. Massive RSI bearish divergence = bearish

IF and WHEN Bitcoin sets a lower low is the moment to be concerned. This will be confirmed if we fall under $43k as indicated by the exclamation point on the chart.

So the bull market is over, pack up and go home? No.

This is a clear warning sign that we need to be on guard for the above scenario and $61k may be our local top for a while before we attempt a new re-test.

On weekly and monthly timeframes, Bitcoin remains bullish and can definitely pump higher after this correction is over (if we don't fall under $43k). A correction to $44k and bounce up from there would be in line with a 30% correction as in the previous bull market.

It's hard to be bullish in March with this chart, so lets see if in April we find sufficient support to push higher again, but for that we need the bulls to come in strong, so far volume has been weak and the last thing we need is a fall in BTC price on increasing volume = v. bearish.

Current market conditions favor shorts (selling local tops) as we correct down.

Like and follow if you liked this idea! Also join my crypto community to stay in touch!