Looking at the 4 Hour timeframe It is clear that we are in the middle of this downtrend channel and BTC is obviously following it, this channel has a top and it has a bottom, you can see that we are at the bottom right now and we are looking to close the third candle under the 200MA which is not good. Nothing here says that we are going up, volume is also going down on the daily timeframe. To be clear, you never want to jump in at the bottom of a downtrend channel, you want to do that on an uptrend channel, that would be a really good scenario, but that is not the case right now.
So once again after falling BTC is caught between overhead resistance (the 200MA) and a simple downtrend line (the green one). If BTC crosses below that green downtrend line it will fall into the white support line which is very strong, if it crosses that line down we are falling for quite a bit until we hit 7K area.
Let's keep an eye on this action but the clues are there for you to see.
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NOW, THE LEGEND; Support trendlines are green Resistance trendlines are Red Horizontal support lines are white, the thicker the stronger the support 50 Moving Average is yellow 200 Moving Average is white
THE TREND: Going Down, we have not made a new higher high THE OUTLOOK: Expected to go down, unexpected if it goes up.
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If we close too many times under the 50MA on the daily we are going down a lot.
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Ok lads, we all know that this is not good but what exactly just happened? The spike up was a sign that we were going down, why? is was to rekt shorts, and the move down was simply predictable. This violation of the 200MA and the trendline and the very heavy support means that the odds of going down just went up exponentially. Down to where? the green X at the bottom of the Channel, maybe not in one candle but at some point in the next few days.
tradingview.com/chart/IdW63iGB/