in my previous BTC post I've pointed out the strong similarities between this years market drop and the one of 2014. Assuming that structure will behave almost the same as in 2014, $3000 is the level to keep an eye out for a major reversal. It is still possible that price will reach this level, however I like to prepare myself for different scenarios, as things can turn out similar, but not necessarily hundred percent the same.
As you can see on the chart, there is a strong confluence lining up around the 5k area, namely a significant major trendline, the -27.20% retracement of wave (2) to (3), a fresh demand zone as well as a major support. For the current bearish momentum to stop at the $5100-4700 area we do need to see volume and an indicative daily candle formation, to confirm a potential sell-off.
A reactive approach is recommended.
Safe trades! Bud
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Opened a short on EOS. Am not expecting a bullish recovery soon and definitely not a trend reversal in the coming days. For clarity, I am not only keeping an eye on the $5000 level on BTC, but also on the $4500-4000 level. This would mean price needs to break the major trendline drawn on my previous BTC analysis. In the context of market cycles, this could be the final despair phase.