Bitcoin suffer today an intraday reversal of over 900 points, leaving a big shadow on top, that after an extended run and with extreme overbought levels.
The reason, the Segwit 2x, Bitcoin Fork, was called off. One of the main reasons of the recent rally on Bitcoin was that people were expecting their free coin from the Segwit 2x, and now that it has been called off, I don’t see any reason why it should continue higher.
Also, we have a negative divergence on the MACD indicator, where the prices have been moving up while the indicator has been moving down. That in the 4-hour chart.
A drop below the 6,900 level, last support, will confirm the trend change.
Given how overbought it is, I would expect a drop to about the $5,000 level over the next 4 to 6 weeks.
Good luck to you