The candle has already closed under the trend on the daily chart. Does this confirm a breakdown? Unfortunately not yet. With Bitcoin, we have 2 break options. Either a “brutal bomb” will come along which will break everything leaving no space for doubt that a break has occurred. Or, on the contrary, the breakout will be very tight. In this case, I follow my own personal rule – to wait for at least 24 hours for both sides to act. This means that since yesterday’s candle was closed under the trend, it leaves me with no other choice than to give the bulls a chance to push the price up again. If their attempt will be unsuccessful, there is a substantial chance that the correction will continue.
Where to look for rebounds?
Since we have already mentioned that it is not certain whether the correction is confirmed or not, it is a bit more difficult to identify targets properly. However, my priority target for now is $ 42,526 – $ 43,870. It is a strong swing value and at the same time, it is 0.382 fibo retracement of the whole cycle.
Figure 1: Bitcoin on a daily chart
Has the decline stopped?
In conclusion, one more question may occur to you, has the decline stopped already? I personally think that it has not. Because if we are witnessing a correction, then this decline is just the beginning. Every time a correction takes place, we always have two options. Either it will not be deep and it will rather take shape of consolidation (for example in a triangle) or a classic ABC correction will take place, going a bit deeper than the triangle.
However, if the correction is confirmed, this is only the beginning of a bigger decline.
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