OMG! They did it!

Doesn’t seem that long since I was drawing these:

  1. Initial up-move in the wrong direction before the down-trend
  2. Points (Blue circles) to construct…
  3. …the downtrend channel (green lines)

We are far away from those above-8k levels.

Recently, I wrote:

Market is fluctuating between 8200 and 7777. Bulls are trying to bounce up from 7777, but no result so far. It looks like price is forming a balancing wedge pattern. Taking into account the previous price action and green lines of the current trend on hourlies, bears have more chances to resume the decline.

I was really very cautious about the bearish attempt. But they did it in a very aggressive way! Look at the point [4]. This is a cluster chart from the Bitfinex exchange. Bearish pressure increased before the break-down.

And now…

Now Bitcoin is around 5k (!)

What is next?

Study the clusters below 5k level. It looks like some very big interest put Buy_limit orders. Most likely, it was an attempt to absorb the wall of Panic Selling flow. 5400 bitcoins were sold there. As the confirmation of this hidden-buying-idea, we got some sort of up-move.

I believe, the bitcoin price could not reverse very quickly after such a great dump. Nevertheless, the first signs of upcoming support arrive on the chart.


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