At the time of writing this we have seen more than a 5% decline in the price of BTC and the total market cap has taken a massive hit. Here is what I see as a potential play and why I think so (and no it has nothing to do with the bitcoin cash fork haha).
What I see for the outcome and bottom for bitcoin is a capitalization wick down to the 200EMA around the $4,150 mark but closing above the on the weekly around $4,400-$4,500. is decreasing which will need to pick up but decreasing could show signs of weakness from the bears. Expect the bulls to wake up and punch a green bar when we hit these levels. I expect the bottom to be in around mid December and a reversal from there back into the range shown leading up to the next halving.
Read further down to see why I think this.
The which has been in play on the log graph for year has been touched 5 times. History tends to repeat itself and the more times a is touched the stronger it becomes. The alone sees bitcoin on the weekly chart hitting around $4,500.
The 200 is a crucial support for bitcoin and currently is sits around $4,150.
Looking at the support it is no surprise that bitcoin has dropped after the support at $6,000 broke. The next major support starts at roughly $4,400.
Lastly there is a gap that bitcoin did not fill on the way up. We are currently filling this gap as we speak and after filling this gap it would take us to around $4,700.