Bitcoin broke out of a consolidation range with resistance at $112,000 and hit a high of $123,000 14-July. The retrace from this major high on 2-August reached a low of $112,000. From this low, Bitcoin made a new jump and peaked earlier today at $124,500.
This second jump produced a very strong rejection. This rejection produces a double-top pattern and points to lower prices. Bearish volume is really high. Lower is confirmed.
How far down will it go?
The first low was $112,000 and the bounce led to a double-top. The double-top means no new highs, buyers were not strong enough, which means that the next drop will break support. Since resistance holds, support is more likely to break.
Bitcoin is now headed toward $107,750 or lower to test the previous support range. We are talking a range between $100,000 and $110,000. This is the support zone that will be tested again.
Please keep in mind that if Bitcoin were to drop to $100,000, market conditions would remain extremely bullish and at the same time we would have a major 20% big correction. This means that after such correction the market can again turn and resume growing for months. Can be 3-5 months growing straight up or it can be more.
The retrace can also result in the test of previous support and this support holding, this is $112,000. If this happens, the market responds ultra-bullish and we focus on a higher high next.
Regardless of the short-term, we continue bullish long-term. Bitcoin is going down.
The bull market is not over.
Thank you for reading.
Namaste.
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