Normally, according to the stochastic RSI we should be in a bull cycle on the daily chart. However I've been watching this inverted cup & handle pattern since a while, and this scenario might play out. The $6000 support seems unable to hold anymore, it wasn't so solid recently. Currently, the pattern looks like a head & shoulders with a tiny right shoulder; I know, that means it is less reliable, but still valid. The normal target is $3500, and there is not a lot of support down to there except the Fib circles. However we might be stopped on the grey downtrend line (which might extend the agony) or the blue long term bottoms line which might trigger a temporary bullish reversal or even a new bubble. The bullish reversal is also supported by the shorts squeeze that is happening right now. So I think we are going to head lower (but hard to tell if the target of the H&S will be reached) and then pump up again in no time. Maybe the best idea would be to set a trailing stop buy after the next drop, I expect the crash market to end soon. However I don't think we are bullish below $9000, and we might range and consolidate for a very long time until we truly rocket up; just that it seems we are soon going to see the best prices to buy for HODL.
Also, looking at the 2h chart, we should still follow the downtrend channel/pitchfork, and I think no trade is secure until we get out of this pitchfork one way or another.
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The shorts squeeze pattern might repeat like in April. We might see again 5 waves up while the price is going down, then a big drop that will rocket the price. Expect a few days for this to happen...
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Shorts got liquidated on OKex and price tripped up from $6000 to $6450; but there is a strong resistance zone and the bulls are still tired. During this trip there was a flat shorts zone on Bitfinex, where some traders with dangerous short positions closed their shorts in the money, while some others created new short positions. Now shorts are heading again to an ATH. We might head again to the $6000 support, but if the bulls can't pull the price through it, the next money pump will push the price up and generate FOMO; these shorts will get squeezed. So if $6000 will hold, there is a good time to go long.
@k0tkin, yes, but the inverted cup and handle is not necessarily reversal (many report in in a bearish trend), and it would make the same target. Anyway my idea is purely speculative, I doubt we would make it that low...
CryptoKeeper86
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Your chart needs more lines
floring67
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@rwells86, it's already overloaded with the circles (but they proved to be useful until now).