AB-CD down is possible

Morning folks,

So, BTC was able to completed only the butterfly at 53K and reversal has started. We suggest that recent sell-off is a technical issue that makes no impact on fundamental background and market sentiment. Still, it perfectly fits to market mechanics that as a rule shows deep retracement after first upward swing, because rest of previous bearish momentum has to be faded.

Currently price is forming the pennant that theoretically is bearish continuation pattern. That's why we do not exclude appearing of extended downside AB-CD pattern after minor upward bounce. So, for speculative purposes I would wait a bit more to understand the way of price reaction at current support area.

For investing purposes, we suggest that current support area could be used for buying some coins for long-term perspective. If we're correct on second leg down - next level to watch for is 38K. But now we do not have clear signs that 2nd leg down should happen