Downward should start...

Morning guys,

If you remember last week we were mostly focused on intraday setup, because there are no question to overall context - by our opinion it stands bearish and we still think that BTC has to hit chain of targets,
starting from daily 2800 and lower right to 1800-2000 weekly ultimate target.

While on intraday chart there was minor question - how far retracement could go. Once market has formed butterfly we've talked about possible H&S pattern with 3980 target around 5/8 Fib level.
Now, theoretically market still stands above the lows of left arm, but expect downside continuation by two reasons.

First is, this is not the way how bulls should control the market with H&S pattern. Now pattern shows clear signs of failure. The action mostly reminds indecision rather than wide H&S.
Second - "high wave" pattern inside the rectangle was broken down.

Thus, we expect re-establishing of our daily bearish trend.