New downside scenario

8 ביולי 2021

Morning folks,

So, last week we were watching for bullish scenario, whether market will be able to form some bullish pattern, while it stands above crucial 32.5K support. Although some attempts are made to proceed higher, BTC was not able to hold on a surface and dropped below the major level.
As we have very similar situation on other markets, such as Gold and EUR, now we're turning to bearish scenario. Currently it is difficult to foresee clear shape of price action, but we could approximately set few targets and potential patterns that might be formed here.

First is, we cold get downside AB=CD shape with target around 24K area. CD leg, in turn, could take the shape of the butterfly pattern, which has the same target. Thus, currently it is possible to watch for bearish continuation patterns on 1H chart and chances to step-in. Invalidation point for this scenario is 36.7K top.