Bitcoin might drop below 3800 soon.
Updated
In my previous BTC analysis, I mentioned about selling at 7300. Price has dropped more than 5% since then and the set-up is still valid.
The rising wedge has formed after a big drop, which is a Bearish signal.
The Descending Trendline has also capped the rallies since February and last week, there was rejection at this Trendline once again.
So, in my opinion, a drop to 3800 and below is on the cards.
Recently, BTC has shown a correlation with the stocks and the recent recovery has lent some support to BTC. However, the stock markets are set for another decline eventually and when that happens, it may take BTC down towards 3800 again.
The rising wedge has formed after a big drop, which is a Bearish signal.
The Descending Trendline has also capped the rallies since February and last week, there was rejection at this Trendline once again.
So, in my opinion, a drop to 3800 and below is on the cards.
Recently, BTC has shown a correlation with the stocks and the recent recovery has lent some support to BTC. However, the stock markets are set for another decline eventually and when that happens, it may take BTC down towards 3800 again.
Note
I will be looking at the 7600-8000 area.
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