I see two potential patterns forming. One is a W pattern that is in the process of repeating for the 2nd time now. If that pattern completes, we could be looking at another further leg downward or an inverted head and shoulders reversal pattern.
Still in a long term uptrend. If BTC can climb back to 11k and hold I think we are in for higher upside. If we dip below 10k, I think 8.5k is in our future. Then we will have another chance to bounce back.
Using the gann fan or speed lines, I've drawn out our longer term uptrend (that we are still in) against the short term downtrend we are also in. If we are able to break out of the red area, I think that will signal the end of our correction. If we do not breakout, we could continue down to supports as low as $1.40.
We have been pressuring to get out of this...
Let's see if we stay in the steep red channel or take a break like the last big uptrend earlier in the year. I think $5 is reasonable, yet $10 could be possible with a boost here or there.
When looking at an asset that is as volatile as bitcoin, a log chart should be used to analyze it. This way, drops are proportionally scaled to the massive growth and falls. When we look at the log chart, this drop actually looks quite similar to the previous correction and more before that. We could test our bottom again, but I don't think we are headed to...
This is nothing more than a long call of sorts. I think that often times we should be viewing bitcoin from a logarithmic lense. This looks very much like a small bump on the inevitable road up.
