So our last udate setup is done - market has completed retracement to 5/8 Fib , forming "222' Buy" pattern and now is the moment of truth, because 8K level is a key to further direction.
Downside breakout will significantly diminish chances on upside continuation and, in fact, will mean continuation of major downside trend. While, until BTC stands above it, it still could show deeper upside retracement,
in a shape of AB-CD pattern. Its target stands around 8.8 area.
Thus depending on your view - you could act accordingly. Bulls could drop time frame more and take long position, as current price lets to place very tight stop, just below major 5/8 level, hoping that upward action will happen.
While bears should wait either for completion of 8.8K target or - yes, downside breakout of 8K level. So, Stop "Sell" order could be used.
The red line 0.618 - 8017$