This is somewhat based off my intuition and knowledge of how these things usually work.
We have broken the first trend line, and will form a new one, and then a third one. This is how downtrends work. I think BTC is in a year long downtrend.
But in the short term we will I think go up to around .5 and .618 retrace. that position also happens to be the Volume area high (which you can't see in this graph). This is typical for retraces to hit a high of this.
After this we will get a continued down trend with a final major drop for the low. Some will say that is too low since it is around 4500. Yes it is low but this is is also the highest volume point according the volume profile otherwise known as the point of control. It would also nicely fit into the bottom of this long term bull channel I have established. Remember, 4500 would be considered the "bitcoin is dead" number, which means it is *indeed* oversold. That's the whole point.
We have broken the first trend line, and will form a new one, and then a third one. This is how downtrends work. I think BTC is in a year long downtrend.
But in the short term we will I think go up to around .5 and .618 retrace. that position also happens to be the Volume area high (which you can't see in this graph). This is typical for retraces to hit a high of this.
After this we will get a continued down trend with a final major drop for the low. Some will say that is too low since it is around 4500. Yes it is low but this is is also the highest volume point according the volume profile otherwise known as the point of control. It would also nicely fit into the bottom of this long term bull channel I have established. Remember, 4500 would be considered the "bitcoin is dead" number, which means it is *indeed* oversold. That's the whole point.