I wrote about this being a bull trap from 10k+ and drew the downwards trendline you see on the chart. Look's like I was dead on for now! (Check out that idea in the link to related ideas).
But what comes next?
I still think BTC could go back to $4.000-5.000, yes! I think the entire market is overinflated at this stage and that a return to mean is for the better - longterm. I am very bullish long term, don't get me wrong. But for now, we will go down.
However, we have a few levels to watch before we can confirm a bigger downtrend. Looks like we are sitting right on the orange trendline which goes back to previous levels from August/September. That will be broken though. A very interesting level to look at: $8900 - $9000 level!
WHY?
Because this represents:
1) the .50 fib retracement which BTC likes to follow 2) A possible (major) inverse head & shoulders forming - left shoulder from 13K high to 10k and back to 12K, head being from 12K to the low at 6k to latest high of 11.8k and a new shoulder forming from that high to the 9k level - with a possible finish and break of neckline at a new run to 12k.
So WATCH the 9k level! If it bounces from here and goes back up towards 12K, we could see a major break to the upside with a potential target of 18k if we break the neckline of the inverted H&S!
If the 9k level breaks to the downside, I am positive we are going back 6k or lower.
Disclaimer: I am currently holding fiat and waiting for entry. This is all my opinion, do your own DD, this is not financial advice.