$BTC made THE pullback. And now?

Potential scenario
After more than three months, it happened. The descending triangle, broke downward. Bitcoin has been making decreasing maximums for three months, putting a lot of pressure in the support $9,300. It was very likely that we could have a bearish move, and now the largest cryptocurrency is being traded at $8,000.

As the book of John J. Murphy argues, Technical Analysis of the Financial Markets (known as the bible of trading), descending triangles have a very high likelihood of having a very sharp and large bearish movement once the triangle is almost completed. Also, after the very quick price increases during May and June, BTC was likely to have a large retracement.

At the time of writing, the price hovers around $8,000, the question is, where is the demand, waiting for the price to start a new bull run? As you can see in the chart, S1, S2 and S3 have higher chances of being levels where the demand could push the price up again.

TA comment
Continuing with the main question of the previous section, where will the demand drive the price up again? Nobody knows for sure, but the community agrees that it will be a level between $6,800 and $8,000.

In order to take advantage of future bull runs, we need to add an indicator to our strategy that could capture such movements and avoid opening positions meanwhile, the price remains bearish or sideways.

For this purpose, a slow moving average could work in pinpointing a momentum recovery of the price. We have selected the indicator RSI with region crossover to trade in the current scenario. It will open positions automatically once the RSI is oversold and crosses back to the neutral zone. This means that the price is recovering momentum and, therefore, might be bouncing on a support.

Pattern
Regarding patterns, the Closing Marubozu Bearish pattern was very present during the big fall we had two days ago. It is a bearish pattern and represents by one candle. This one has a long body and short, or none, wicks with a downward movement.
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