On the lower time frames we seem to be printing another and potentially a continuation (not as common as the reversal pattern but still happens). This is playing out within a larger which is , however, we have 2 scenarios depending on which target we reach when the 2 patterns play out and this will decide if that is in fact a (looks a bit stretched imo but might work since we have of the daily but it all depends on our weekly SMA200 support, which I suspect we might not even reach considering the amount of buy orders sitting around that region.
The has a breakdown target of $3300 - $3350 which is also more than a 168.2/178.6 fib extension of the wave down from the head and this will come close to our weekly SMA200 which is currently sitting around $3300. This would also coincide with the larger support which means the case would still be in play.
The , however, has a breakdown target $3200 - $3100 based on the height of the flagpole. This also coincides with a 168.2/178.6 fib extension of the drop from the flag pole after we were only able to manage a 38.2 fib retracement so the 168.2 fib extension is quite feasible. If we break below the target of the , we also breakdown below the support of the as well as our weekly SMA200 so things could turn very if we have a daily close below $3200 as well as our weekly SMA200 support.
If we do drop below our weekly SMA200 support and go on to retest the December lows, then we could either have a strong bounce back above our weekly SMA200 resistance for a strong move to the upside, alternatively, we might drop straight past our December low, in which case I'm not even sure that our $3k support would hold.
A break from the could has an upside target of $4000/$4200 at this stage, but better to cross that bridge once we get there and have a bigger picture of all this.
Good luck and happy trading!
Revised Entry: $3240 USDT