In our last Bitcoin analysis I pointed out that I was bullish Bitcoin as long as price held above the critical support of $8,500 and the RSI did not break below its support trend line. Unfortunately for bulls, both price and the RSI indicator broke below their respective support levels. This has lead to a move of $1,000 lower.
Red lines – wedge pattern
Black line -RSI support
It is important to know when one scenario gets canceled and when to get out of a losing position so that loses to not become larger. Breaking below key support at $8,500 and seeing the RSI break below support has lead us to cancel our bullish expectations for the short-term in BTCUSD. We now see a downward sloping wedge pattern being formed in the Daily chart. Downside target and possible reversal level is at $6,600 area. Until then we remain neutral. Trend remains bearish.