BUT! We must also look at the larger context:
On the weekly log scale, it appears to be something of a normal pattern. I will be watching the EMA50 very carefully as we do not want to close a weekly candle below that moving average. Data shows us that the last time that happened, we had a bear market for a year.
At this stage, if you are holding crypto assets we need to wait for the market to come back around to make a decision to sell.
Right now we are looking at a key level of $7271, which needs to be cleared in order for stability to return to the market. If we break through the green line to the upside, we will head toward $8692.60 where we will likely make an attempt to reach $10,000. It is in this that we will be watching the market and looking to exit our positions if you are still holding. If we trade higher, the next level to watch will be $12,935.
If we cannot pass $7271, there is a chance of breaking down to the next around $3500. If we do, I do not suspect we will be down there for long at all. And I will be buying heavily down there without a trend reversal confirmation.
As always, I'll keep updating this idea actively.
I'm watching for us to clear the 200ema on the 4HR, and then looking for a golden cross along with clearing some of the resistance lines.
I've closed long position. We didn;t get all the way to the 0.618 on the chart, but thats okay. Next level I'm watching to get long is $8692. If we breakdown there, we short to $6621 or even lower.