Bitcoin decreased significantly and is almost to reach some very important and critical support levels. It has failed to move to the upside, so it seems like we may have an important sell-off again. However, we still need a confirmation that the rate will drop aggressively because it continues to stay right above the 6000% psychological level.
I’ve told you in the previous days that we may have another drop if the rate will fail to start an aggressive upside movement. It has moved sideways, but I’ve told you that you need to be ready for an aggressive movement very soon because the rate cannot move like this forever. Price has developed a minor chart pattern and I’ve said that a valid breakout could give us a clear direction for the upcoming period.
It is still premature to talk about a larger downside movement because this could still be a temporary drop.
You can see that the rate has failed to reach and retest the upside line of the minor pattern and now it has made a breakdown below the downside line and it is almost to reach the former downtrend line (upside line of the former major pattern). It has slipped below the 6425 level, a valid breakdown will lead the rate towards the 6000 psychological level.
You can see that I draw a trade setup on the Daily chart and I’ve said that only a valid breakout above the upside 50% Fibonacci line of the descending pitchfork and above the WL1 will really confirm an important upside movement.
I want to remind you that only a valid breakdown below the 6000 psychological level and below the median line (ml) of the descending pitchfork it will confirm a massive drop. If this scenario will take shape then the crypto market will crash and may crypto and projects will really die.