$7100 is just a .50 Fib. retracement from the previous drop

Two days ago I published a bearish scenario on BTC already.

Here is a new one even more bearish.

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I know that a lot of crypto traders use different parameters (like 20, 60, 120, 30) with Ichimoku instead of the classic one but I find the original one much more reliable.

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On the hourly chart

(a) The Kumo (cloud) (hourly) is a support
(b) but the Tenkan sen (blue) and the Senkan Span B (red line of the cloud) should be a resistance

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the (b) on the left is (a) ;-)

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Will this sideway action end like the one we had end July?

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I must admit the momentum is pretty bullish now.

However volumes are not there to confirm that and there is a bearish divergence on the 4H timeframe.

Trade active

Shooting star + Bearish divergence.

Let's go down now

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Now a bearish divergence on MACD (4h) on top of the one on the RSI (4h)

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So sweet, BTC broke down just after reaching the .618 Fib. retracement.

How long will the current support hold the fall of BTC?

Trade closed manually

I think we will have a correction after the huge drop we had.

See my most recent posts to have the latest updates

Note

I closed my trade at least temporarily for the reasons mentioned on the graph below

AyKay-Trading

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AyKay-Trading

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