As described in my previous idea post, $7300-$7400 was screaming for a large correction. We have also broken down from this rising wedge in my opinion.
This trend reversal can be verified using my trend indicator on the 4hr/6hr timeframe.
First target is $6850 at around the 0.38 fib level
Wow, it dumped a lot harder than I was expecting. How does this match with the trend fan setups?
TheCryptoRuler
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@mljones, Yup! It certainly did! Closed my shorts around $6700, Opened some scalp longs between 6350 and 6450. Going to see if we can get it back to $6600 and $6800 :D As far as the pitch fan, that is a long term analysis and so even though we have dipped back below the trend line the bottom could still be in right now. Bear in mind that the stop loss for that strategy is below the current bear market bottom.
mljones
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@TheCryptoRuler, this will be the 5th time BTC has banged into the 6k support region. Doesn't it seem like it's about time it gave way? I would be really nervous about taking a long here. If this were a pattern that showed up on a futures day trade I would be expecting it to go much lower. It looks to me like a flat bottom bull trap triangle.