Looking at our trend timeframe we see BTC remains in a major downtrend since ATH in December 2017 at slightly below $20,000 per BTC. Stochastic RSI showing momentum is in favor of bears with no signs of slowing down, however price currently testing our dynamic and horizontal support at $6,000. Last month’s candle left a low of $5,900, currently sitting at $6,300 expecting momentum to pick up and price to break our uptrend and continue falling towards our $5,000 support zone. We could be seeing a potential sell off towards our $3,000 support zone before seeing any signs of a bull market, will be watching smaller timeframes for reversal.
Shifting over to our pattern timeframe we price has respected a descending wedge pattern since March 2018, and confirmed in May with a 2nd bounce. BTC has bounced off our dynamic resistance at $7,400 leaving a lower high imprint and now looking to form a lower low at $4,700. Lower low only possible if we see a break from our uptrend line, stochastic rsi showing momentum is in favor of bears. Will be watching our daily timeframe for a trigger, however regardless of the direction BTC moves expect a radical breakout/breakdown, a weekly bullish engulfing of last weeks candle activates our long term trade, otherwise expecting BTC to continue to sell off.
Finally looking at our trigger timeframe we see BTC has found support at $6,200 and is now attempting to push towards our $6,500 resistance. Stochastic RSI showing momentum also remains in favor of bears, a daily close above $6,500 and expect a push towards $7,000. However if we see a rejection from $6,500 expect a sell off towards our dynamic support at $5,200 respecting our discoing wedge pattern. Sitting on my hands until we analysis plays out.
