As expected, Bitcoin's short-lived rally had short-lived to follow through after its big jump on 6 Jan. The inverted has been invalidated, and the has ultimately failed. It looks like we have a pattern playing out with the right shoulder currently printing as we speak. If we break the neckline support at around $3880, then I'm expecting a +- $160 drop with the target from the neckline being the height of the head from the neckline, which takes us to a short term target close to our $3730 horizontal support to form yet another bart pattern and will bring us back below our SMA50 on the 1D, as has happened on quite a few occasions in the past 6 months where we briefly breach our SMA50 on the 1D then reverse shortly after.
For the mid term, my trade target covered by my previous 2 posts is still active, with a bottom target of $2640.
This looks to me like the perfect trap for retail!