TA is for probabilities. Nothing is certain, and no one should actually take anything here or on any of the graphs take for credit. DYOR. Read - a lot. Find what fits best to your way of trading. Be open to comments conflicting with your own view.
Assumptions: 1) BTC is in a bear market 2) BTC is not going to zero 3) Every bear market needs eventually a bottom; 6K was the bottom? Trend line seems to confirm 4) Daily it looks like a double bottom has formed/is forming (next 72h will confirm) 5) FIB confirming levels of support and resistance.
If the double bottom is indeed the case here we would see a bounce to 8800-8850; and from there eventually going to 11100-11500. If the latter happens, we would also half way in break the bear trend line and puts BTC up for a potential new bull rally.
Could we break down further? Absolutely, but at this moment, only if (in my view), there is a news catalyst to do so.
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BTC took a turn for the worse. So perhaps we do go to 3.5K? Still don't think so. The double bottom outlined before, is not longer in play. We may still see a double bottom, which is visible on the weekly - however, important is the closing of the weekly candle around 7900 for this pattern to work out. 5950 is the bottom we could hit, but I expect a bounce and expect a green daily candle tomorrow (hopefully around 7700). (tradingview.com/x/iK5tDyMq/)
@samiswilf, could very well be. Remember TA is not about correct or incorrect (to a certain extent), it is about probabilities and risk associated with it. If we fall through the current support, and through 7200, we may see 3.5K. At this moment, the indicators tell me it is more probable that we go to 8800.
samiswilf
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@KSCRNL, incorrect my friend. We're going to 3.5k.