Looking at our trend timeframe we see price continuing to respect it’s downtrend since forming it’s all time high at 20,000 per BTC. Minor support found $6,000-$6,500, looking for a bounce off or break off this level. Stochastic RSI showing momentum is in favor of bears with no signs of reversal, price looking indecisive as well. Last time we were at this price BTC was in the middle of it’s bull run in November. Lower high formed at $8,000 in September, now looking for a lower low near our $5,000 support level, however there is still room for a sell off towards $3,000. Will watch smaller timeframe for entries.
Shifting over to our pattern timeframe we see price counting to respect it’s downtrend behavior, with no signs of reversal. The month if September left with a high if $7,400, and a low of $6,000. Weekly showing a triangle pattern has formed, is a continuation of of down trend or a reversal? Stochastic RSI showing momentum in favor of bears with no signs of reversal, leaning towards a retest of $5,900. A bounce off this level and we should see a bullish extension towards $7,900, however if rejected at this level expect our price to sell off towards $5,000.
Last but not least looking at our trigger timeframe we see price has formed another triangle pattern inside our weekly triangle. BTC starting to tighten it’s range from $6,450-$6,600. A daily close above/below either of these levels indicates the direction of our next extension. Stochastic RSI shogun momentum is in favor of bulls, however we may have peaked and should be expecting a sell off within the next couple of days.
