Bitcoin is building a strong downtrend channel. Will the bearish momentum be able to drive price lower towards $5k or will there be a reversal breakout?
Bitcoin seems to be a key bounce or break spot – see the red and green arrows. A continuation lower could see price aim at the Fibonacci targets after bouncing at the 61.8% Fib. A bullish breakout could indicate a potential for price to retest a higher trend line.
BTC/USD seems to be building a bear flag chart pattern because price action remains slow, corrective and choppy. A break above the 23.6% Fib could see price move towards the 38.2% Fib resistance, which is a key zone due to the top of the channel as well. A break above the channel could indicate a new uptrend or larger bullish retracement. A bearish breakout below the channel could see a downtrend continuation.