After failing to break the $7400 resistance BTC has snapped lower to the $6900 price support which once broken has resulted in a quick continuation lower. It was crucial for BTC to close above $6900 and particularly the 0.27 FIB extension in order for a chance of a further move higher to test the upper trend line resistance at $7600. This pullback was anticipated after a full 100% extension wave was fulfilled on the daily. If the daily session closes as it is now around $6700 it is expected that we should see a retest before a continued move lower. My next level of support will be the counter trend (red) level which aligns around $7400. Based on the current momentum I am expecting some brief consolidation before a further move to the downside to test the price resistance ( new support) levels. I will then reevaluate my positions and further analysis.
Commento:
Attached is the 4H timeframe that shows once the 4H candle closed below the .78 Fib support it quickly melted to the downside.
Commento:
$6400 level met... as mentioned bearish momentum is strong. Huge sell orders coming in pushing this lower in the last hours.