The downward channel is nicely in place at the moment, but the bad news for the bulls is that there appears to be plenty of room to the downside.
The bottom of the channel will coincide with $5,000. Which is a big fall from grace from the highs of $20,000. It also looks like a descending triangle with the bottom of the range being $6,000.
There does appear to be support at both $5,000 and $5,500, so I’ll be looking for a bounce off probably the latter.
If we can identify areas where there are multiple technicals lining up, that adds more weight to the level. But at the same time, price is often drawn to those levels too. So I think $5,000 is a real possibility this week.
The bottom of the channel will coincide with $5,000. Which is a big fall from grace from the highs of $20,000. It also looks like a descending triangle with the bottom of the range being $6,000.
There does appear to be support at both $5,000 and $5,500, so I’ll be looking for a bounce off probably the latter.
If we can identify areas where there are multiple technicals lining up, that adds more weight to the level. But at the same time, price is often drawn to those levels too. So I think $5,000 is a real possibility this week.